Public confident of house price growth

Research has shown that that the public remains confident of continuing house price growth, despite evidence the market is slowing.

A poll by the Association of Investment Companies showed that 62% of house buyers believe that house prices will continue to rise. However, recent surveys of the housing market show that house price growth is beginning to slow.

Annabel Brodie-Smith, communications director of the AIC said: “Optimism in the housing market could well be misplaced.

“There is increasing evidence that the housing market is slowing down following five rate rises and the recent credit crunch. Rate rises are already beginning to hit people's finances and could well undermine future confidence.”

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