Confidence rising, reports London Mortgage Advice, your London Mortgage Broker Tuesday, 13th October 2009

There is a vast majoity of homeowners who believe that home values will rise, over the next six months.
And this rise confidence could push transaction volumes higher in the coming months.

However, those who are currentloy renting do not share that optimism and think that house values in their area will either remain unchanged or decline in the coming six months. Renters are also least hopeful about the availability of mortgage finance saying it is no easier to obtain a mortgage now than three months ago.

However, despite the problems in securing a mortgage, most are intent to try to buy in the next six months. Overall, homeowners believe that the clearest sign of a property market recovery is seeing the level of transaction activity in their area increase from the recent lows.

The renewed confidence is the best we have seen since the credit crunch and it is confidence that creates the atmosphere for increased transactions.

On the other hand, with lending remaining constrained, transaction volume cannot recover as strongly as demand suggests it should, and the inability of first-time buyers to get a toehold on the housing ladder is the biggest single risk to the housing market recovery. The majority of homeowners believe their own home will rise in value at a faster pace than the average home in their local area, most notably in London and the South East, where it seems an Englishman cannot escape the view of his home as his castle.