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Confidence is Returning to the UK Housing Market
Confidence is gradually returning to the UK housing market, according to the Building Societies Association, which has said that people are less concerned that house prices will fall sharply next year.
Paul Broadhead, head of mortgage policy at the BSA, made the comments after a new report from his organisation showed that homeowner confidence is very stable, despite the gloomy outlook for the economy.
Mr Broadhead said it is "quite surprising", given the situation in the economy and the eurozone, that sentiment is holding up so well.
"The role that sentiment plays in the UK housing market is vitally important because people buy homes as much with their heart as with their head," he explained.
"If they are feeling more confident about it, then those inspirational purchases may begin to return to the market, which is "good for all concerned", he added.
The expert predicted that the market in 2012 will be "fairly similar" to that seen in 2011, with many realising that now is a good time to buy a home - something borne out of the relatively stable house prices seen this year.
Mr Broadhead said that consumers are less concerned about large house price falls, which perhaps may have played on their minds in 2011, as stability seems likely next year.