Almost one in four people in the UK believe house prices will continue to rise, suggesting that despite a potential increase in interest rates next year, confidence remains high.
According to the latest house price optimism index from Dutch banking giant ING, 70% of those questioned in the UK expect property prices to rise in the next year, slightly down from a year ago (72%).
For Europe as a whole, the majority of consumers (56%) believe that prices will increase over the next 12 months.
The ING survey, which questioned 15,000 people across Europe, revealed that despite the optimism about house price growth, many consumers are struggling to pay the rent or mortgage each month.
The gap between the share of renters and owners facing difficulties is particularly large in the UK, with 23% of renters saying they had problems paying, compared to 10% of owners with a mortgage. Even home owners who say they can easily pay still think house prices are too expensive (52%).
The difficulty for first time buyers getting their foot on the housing ladder in the UK was also highlighted by the survey, with 89% saying it was becoming increasingly difficult for newcomers to buy a house.
Many in the UK continue to see property as an important asset for their later years, with over a fifth (21%) viewing their home as part of their pension, significantly higher than the European average (15%).
ING senior economist, Ian Bright, said: “House prices are on the up in many European countries and consumers remain bullish that this will continue. As a result, we’re seeing more people viewing property as an important financial asset – including countries where renting is the norm – but there is also frustration with property being increasing unaffordable.“
