29% 'think house prices will rise'

Oct 27 2012

Almost a third of people expect house prices to rise in the next year, according to a report.

The latest Bank of Scotland housing market confidence tracker shows that 29% forecast a rise in prices while 25% predict a decline.

It means the bank's "house price outlook" balance stands at plus-4 in October, slightly down from plus-6 in June and up from minus-17 in October last year.

The outlook balance is aimed at tracking levels of public confidence in the housing market.

The survey shows that about three-fifths (59%) think the challenge of raising a deposit is a barrier to buying a property while 54% cite job security.

Almost three-fifths (57%) think the next 12 months will be a good time to buy. This is 11 times the proportion of those living in Scotland who think it will be a good time to sell (5%).

Nitesh Patel, housing economist at Bank of Scotland, said: "Despite some recent weakness, the general improvement in confidence in the outlook for house prices over the past year reflects the relative resilience of the Scottish housing market.

"Although the weak economic climate remains a significant constraint on housing demand, the low level of mortgage payments relative to income continues to provide support for house prices."