There is a split in confidence in the housing market, according to the latest quarterly Halifax Housing Market Confidence tracker, with optimism about house sales remaining high but confidence in the purchase market reaching its lowest level since 2011.
The Confidence Tracker indicates that of those surveyed, 57% feel it will be a good time to sell in the next 12 months, exceeding those who think it will be a bad time (32%). This is the highest score of this measure since the survey’s inception in April 2011, making a net balance of +25 compared with +12 in Q4 2013 and -6 in Q3 2013. Sentiment towards selling is even stronger among owner occupiers, with 63% stating that now is a good time to sell.
In contrast, the proportion of respondents who feel that now is a good time to buy has fallen to a net balance of +5, a fall of 29 points in the last quarter.
Positive sentiment towards selling is highest in the East and South East, where 65% think it will be a good time to sell, compared with only 36% who say this in Scotland.
The report identifies a number of different reasons for the current lack of confidence in buying. Rising house prices are seen as a barrier to buying by an increasing number of people - now at 35% (up from 20% a year ago). There is also an increase in the number of people expressing concern about rises in interest rates (up from 13% a year ago to 18%).
However, deposit-raising still appears to pose the biggest perceived barrier, and was mentioned by 55% of respondents.
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