House price confidence could affect first time buyers

06-Jun-2007

Consumer spirits remain high despite recent rate rises and political developments, new research has advised, with the expectation of further house price rises heralding more bad news for first time buyers.

The Nationwide Consumer Confidence Index for May saw levels of optimism reach their highest point since November 2005, the building society has reported, with house price expectation reaching a new high.

Consumers believe property values will increase by 4.5 per cent over the next six months, the study advised.

Even Prime Minister Tony Blair's announcement that he was to step down did nothing to affect consumers' positive frame of mind, with the index rising nine points in total during May.

"Higher interest rates have not affected consumers' overall confidence, but they do seem to be having an impact on their willingness to spend," Nationwide chief economist Fionnuala Earley commented.

The proportion of first time buyers receiving financial assistance from parents has now reached 40 per cent in some areas of the country – a figure only likely to increase in the light of the Nationwide figures, which indicate that both further price growth and future rate rises are likely.

2012: May | Apr | Mar | Feb | Jan

2011: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2010: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2009: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2008: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2007: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2006: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar | Feb | Jan

2005: Dec | Nov | Oct | Sep | Aug | Jul | Jun | May | Apr | Mar