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UK Housing Market Confidence Cools

Figures from the latest Halifax House Price Sentiment Tracker has revealed that there is less confidence in the UK housing market this November compared to the previous year.

The survey, which was conducted in partnership with IHS Markit, found that just 14% of those asked in November felt that the value of their home rose over the last month, compared to 17% in both September and October.

For comparison, during the first lockdown, only 4% of those surveyed in May felt that the value of their home rose.

In seven of the 11 monitored regions, people felt that property prices rose on the previous month, with the sharpest increase signalled in Yorkshire & Humberside, followed by the South West of England.

Elsewhere, households in the East of England, Wales, London and the North East of England, felt that the value of their home had fallen, with the rate of decline sharpest in the North East.

Despite some regional woes, on average, more people think their house will be worth more in 12 months than those who believe it will be worth less.

According to those surveyed, just over a quarter (27%) of households believe the value of their home will have increased by this time next year, compared to only 16% back in May.

Commenting on the tracker’s findings, Russell Galley, Halifax Managing Director, said: “UK households remain broadly confident in the strength of the property market. The perceived rate of house price growth weakened slightly during November but is nonetheless above average and a noticeable reversal from the period of negative sentiment we saw between April through to August.

“People also remain cautiously optimistic that property prices across the country will be higher in 12 months’ time. However, expectations softened from October, and remain subdued by historical standards. This is unlikely to change significantly while the macroeconomic landscape remains uncertain, with most housing market experts predicting greater downward pressure on house prices as we move into 2021.”

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