Only 6% of Brits think increasing house prices would be beneficial for the country, but one-fifth (20%) say it would be advantageous for their personal finances
Most recent figures show that the housing market is growing at its fastest rate in seven years – a jump of 9.5% in the year to May. Experts suggest that ‘market activity continues to be boosted by the government’s stamp duty holiday’ and that this boom period may continue as the ‘unexpected savers’ of the pandemic look to invest their extra money.
Now, new YouGov tracking data shows that 58% of Brits expect prices of homes to go up in the year ahead while 21% expect them to stay about the same, and only 6% anticipate a dip.
When asked in February last year, prior to the beginning of the pandemic, 43% expected house prices to go up, compared to only 8% who thought they would drop. Fast-forward to April 2020 - just after the UK entered its first lockdown – and the number of those that thought house prices would increase tumbled to just 19%, while those who anticipated a fall, increased to 41%.
Opinion remained static for a couple of months, before beginning to rise from June to August, at which point it levelled off once again at around 35%. The success of the vaccination programme caused confidence to rebound, with the number expecting house prices to go up shooting up from 35% in mid-January 2021 to 50% in mid-March. Expectations that house prices will rise have grown further since that point, reaching 58% in early June.
Half of Brits think it would be better for the country if house prices dropped
In general, 48% of the public say it would be better for Britain if house prices went down, while a much smaller proportion (6%) think it would be better if prices increased. Around a quarter (27%) believe it would be best if it remained at the current level.
When asked the same question, but this time thinking about personal finances, One-fifth of Brits (20%) say they would be better off if prices rose. A similar proportion (22%) say it would be beneficial if prices fell.
Generational differences also become apparent when considering property and personal finance. Unsurprisingly, those saying it would be beneficial if prices dropped is particularly high among those most likely to be looking to get on to the property ladder.
Over half (56%) of those aged 18 to 24 claim a price drop would be beneficial and 29% of 25 to 49’s agree. However, only 11% of 50-64’s and 3% of those aged over 65 say they would be better off if house prices rose.
Half (48%) of Brits say it will make little difference to them personally if house prices rise or fall. This is most apparent among those aged 65+ (72%) compared to only 20% of those aged 18 to 24.