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Homeowners predict property price rise


30/01/2006 15:29:00

House prices are likely to increase during 2006, according to the expectations of those surveyed at The Homebuyer Show.

Four in five homebuyers think property prices will go up, showing a remarkable increase in optimism as this figure was below one in three at the same time last year.

Similarly, 45 per cent of people last year thought house prices would go down, whereas just 15 per cent are of that opinion now.

Nick Clark, manager director of The Homebuyer Show, commented: "With the realisation that a house price crash was highly unlikely, the market has begun to show signs of positive growth and both buyers and sellers are returning to the marketplace.

"Speculation of a reduction in interest rates should see a further boost in activity which should cause house price inflation over the whole of the UK."

The survey also revealed that two in three people will be looking to purchase a property in 2006, with east London, the north-west and the south-east the most popular property locations.

track© Adfero Ltd

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