Property Market Retains Optimism

Monday, July 12 2004

A YouGov survey performed for Inside Track, the property investment education specialists, has shown that optimism is rife in the property market. 59% of the 2033 people questioned thought that house prices would increase over the next 12 months, compared with 23% who anticipated a fall. Of the homeowners questioned, 65% anticipated a rise.

A further survey was performed on people with residential property for rental income. They were found to be less optimistic with only 53% seeing the market go up over the next 12 months, and 24% expecting lower prices.

The respondents were also asked to estimate the value of the home in which they live. The average estimate was £179,000, which is slightly above the Office of the Deputy Prime Minister?s reported average house value during May of £170,719 ? up from £168,600 in April.

The survey also showed that people still consider property to be a sound investment. 56% of those who had an opinion felt that property is currently the best investment one can make when compared to the stock market, bonds or saving for a pension. Only 4% believe that a pension is currently the best investment.

The survey results arrive as the Office of the Deputy Prime Minister releases its house price index figures for May 2004, showing that UK house price inflation in May 2004 was 12.2%, up from 10% in April.

Brad Rosser, spokesman for Inside Track said: ?The survey clearly demonstrates that confidence is still strong in property as a form of investment. Inside Track has always advocated that property should be a part of every balanced investment portfolio and it would appear that this is a belief that is now strongly held in the community too.?

Inside Track