More Britons expect house prices to rise than fall in 2012

Nearly a third of Britons think that house prices will rise rather than fall in this year, as consumer confidence improves slightly, the latest Halifax report shows

Almost 33% of Britons believe that house prices will rise rather than fall in 2012, the Halifax Housing Market Confidence tracker report shows.

As a result, the headline House Price Outlook balance has moved into positive territory with an overall balance score of +7 percentage points compared with the negative reading of -2 recorded in its October survey.

Most regions in Britain expect an increase in house prices but Londoners are the most optimistic about house prices with an overall net balance of +21 while the North East has the most negative outlook for house prices (-3).

However on a more cautionary note, the Halifax said the outlook for the housing market remains subdued. The majority think that any house price movement over the next twelve months will be relatively small with 65% expecting any movement to be between +5% and -5%. The survey found job worries and raising a deposit are the main hurdles to home buying.

Housing economist at Halifax Martin Ellis commented, "The modest improvement in consumer confidence in the outlook for house prices reflects the resilience of the UK housing market over recent months in the face of a weak economic recovery and the deterioration in the outlook for both the UK and global economies."

"Looking forward, we currently expect broad stability in house prices in 2012, although there remains much ambiguity around this given the considerable uncertainty regarding the prospects for the UK economy."