Public start to believe in price rises

Four out of five home owners expect property values to rise over the next six months, according to the so-called Zoopla quarterly survey of housing market sentiment.

The fact that this survey has now been rebranded from Propertyfinder suggests the site's re-naming.

The RICS has also reported house price rises, driven by lack of stock.

Of the 6,682 home owners surveyed by Zoopla, 79% believe home values will rise, with only one in ten (11%) predicting that values will fall over the next six months.

Those expecting a rise thought average house values in their area will increase by over 5% in the next six months.

But owners' optimism is not shared by renters, 42% of whom think 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, with over three-quarters saying it is no easier to obtain a mortgage now than three months ago. Yet, despite the difficulties in securing a mortgage, over half of renters (53%) indicated that they will try to buy in the next six months.

Alex Chesterman, CEO of Zoopla, said: "Optimism in the property market is climbing back to levels not seen since before the credit crunch began in 2007 and is four times higher than it was in the depths of the decline earlier this year."

"Confidence drives transaction volumes, which in turn drives house prices. But 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."

He added: "The record levels of traffic to Zoopla.co.uk, with over one search per second recently, is another strong indicator of the rising interest and confidence in the housing market."

Meanwhile, Badger Holdings, parent company of Townends and Regents estate agents, has reported a 30% increase in instruction numbers in the last three months compared with the second quarter of this year.

Douglas Sleaper, group sales director, said: "Many housing commentators have recognised that a large part of the impetus in rising prices has come from the chronic shortage of new stock coming to the market."

"However, comparing Q3 with Q2 we have seen a 30% increase in instruction numbers as sellers recognise that the market has improved significantly during the year, tempting them to put their home up for sale. Although figures are still of course historically low, this is a definite sign of an improvement in confidence."

"The motivation varies but we are seeing increasing numbers of 'reluctant landlords' selling their buy-to-let properties as well as other sellers who are fortunate to have enough deposit to secure a mortgage that enables them to trade up-market."

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