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Bigger mortgages as confidence returns

Date: 02 Feb 05

Consumers are taking out bigger mortgages as confidence returns to the housing market, according to two leading property websites.

assertahome.com and propertyfinder.com discovered that 52 per cent of house-hunters are expecting house prices to rise. This figure was only 30 per cent in December.

Less people believe house prices will fall: it is now 43 per cent compared with 66 per cent last month.

As such, confidence in the housing market is now approaching levels not seen since last July, when 57 per cent of respondents expected prices to rise.

The managing director of assertahome.com and propertyfinder.com, Jim Buckle, said: "Contrary to popular belief, the housing marketing is not heading for a crash."

Talking about the findings, he commented: "Last month the seeds of optimism were sown as confidence in the housing market began to increase.

"Housing market activity normally picks up at the start of the year. As the spring approaches I would expect to see a gradual improvement in house hunter confidence, provided interest rates remain steady."

People are also prepared to take on higher mortgages, increasing from 56 per cent in December to 65 per cent this month.

However, when it came to first time buyers the figures were not so encouraging. The number visiting the propertyfinder website dropped for the second month in a row.

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