Britons Still Expect House Price Rises

Only 14 percent of British adults believe the recent rise in interest rates announced by the Bank of England will cause house prices to begin to drop, according to HI Europe. A much higher proportion (40%) believe they will continue to rise, albeit slowly.

Nearly a fifth (17%) believe that house prices will now stabilise at their current levels. Men appear to be more bullish about prices - 58% expect them to continue to rise, vs 46% of women, and only 31% of men are 'very worried' or 'quite worried" about rising interest rates, vs 40% of women. 29% of men say they are 'not worried at all' about rate rises, compared to 21% of women.

People aged 35 to 44 and / or those living in southern England are more likely to expect continued rises. Those aged 65 and over are the least worried about rate increases in the future (45%, compared to 25% of the general population).

Residents of London, recently labeled as the second-most expensive city in the world, are among the most likely to believe that house prices will begin to drop (18% think this). They are also the most concerned about future interest rate rises, with 45% of them saying they are either 'very' or 'quite' worried.

According to Karim Iskandar, Vice President of Business Development, Financial Services at HI Europe, consumer perceptions will dictate property demand and therefore prices in the short term at least, whatever economists say. 'Not many people believe that property prices will drop, and until they do we are unlikely to see a downturn in property activity'.

HI Europe surveyed 2,079 adults within Great Britain between 16 and 21 June 2004, as part of the QuickQuery GB online omnibus service. The company's web site is at www.hieurope.com

All articles 2006-23 written and edited by Mel Crowther and/or Nick Thomas, 2024- by Nick Thomas, unless otherwise stated.

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