The Building Societies Association’s Property Tracker report indicates a shift in public expectation, with one-third of respondents now predicting house price increases over the next 12 months.
This optimism is a significant change from the previous quarter when only one in five expected a rise.
The positive sentiment coincides with a pause in Bank Rate rises and the emergence of lower mortgage interest rates, following three months of consecutive price increases.
At the same time, the proportion of people expecting prices to fall has decreased to one in four, down from 39% in September.
Affordability remains the main barrier to buying a home, although the number of people citing this has dropped to 68% from 71%.
Raising a deposit is also seen as less of an obstacle than in September, with 58% mentioning it, a slight decrease. However, concerns about job security are on the rise, with 22% now viewing it as a barrier, up from 19%.
Most homeowners remain confident about affording their mortgage payments, with 85% expressing confidence. Nevertheless, the percentage of those not confident at all has risen to 5% in December, pointing to an increase in financial difficulties.
Renters are slightly less confident than homeowners, with about 73% feeling secure in meeting their housing costs.
The market sentiment remains reserved, with only 16% believing now is a good time to buy, consistent throughout 2023. The figure rises to 46% among first-time buyers who feel it’s not the right time to buy a home.
