According to a survey by Hometrack, seven counties in the UK have reported house price increases whilst prices remained flat in a further 13. The survey suggested a 29% rise in the number of buyers registering their interest with estate agents, and agreed sales in February this year were up by 36%.
This level of enthusiasm has suggested that the market is picking up. Hometrack have also predicted that interest rates would be more stable, low employment would continue, and rising household incomes would help support rising prices in the housing market by the end of this year.
Our view
Property is a difficult market to call at the moment. We expect confidence to return and then a further interest rate increase towards to middle of the year before rates fall again towards the latter part of 2005.