By David Fuller
The majority of European investors believe that house prices in their home country are likely to rise over the next 12 months.
The latest data and analysis from ING, which surveyed 15,000 people in 15 European countries, found that 59 percent of respondents believe that property prices will rise over the next 12 months. Consumer confidence is up by 3 percent compared to the same time last year.
Growing house price expectations are especially high in Romania (72 percent), Spain (66 percent) and the Czech Republic (65 percent). The economies in each of these countries are currently experiencing strong growth and this in turn is helping to strengthen their housing market.
Romania showed a particular large leap in the number of residents who believe house prices are set to rise (20 percent), although most people only expect house prices to rise slightly.
However, rising house prices are not viewed positively by everyone. In fact, three in five of those surveyed consider housing in their country to already be expensive.
Across Europe, two in five (41 percent) report that their current home cost over or at the top of their budget, while nearly a quarter (23 percent) of all respondents found that their running costs are higher than they anticipated, and one in five (20 percent) find it difficult to manage their housing payments.
“People across Europe are finding housing expensive,” confirmed Nathalie Spencer, ING behavioural scientist. Many are feeling the pinch and finding it difficult to pay their rent or mortgage each month. When housing is expensive people have less available for saving or investment, which may leave them vulnerable if faced with unexpected income or expenditure shocks. Planning and sticking to a budget is crucial when buying and renting a home and will help ease pressure on the purse strings in the long term.”
Halo Financial has published a free guide on the key steps needed to buy property in Europe safely and successfully – including tips on budgeting and saving money wherever possible.