Public have confidence in housing market

The general public have confidence in the housing market despite recent figures that suggest property prices are beginning to drop, a new study has revealed.

Research from the Association of Investment Companies (AIC) has found that 62 per cent of the general public believe that the housing market in the UK will continue to rise in value, contrary to evidence of it slowing.

On the other hand, only 44 per cent of active investors were of the same opinion and 48 per cent of those with a vested interest in the property market thought it was set to stagnate, fall in value, or crash.

Annabel Brodie-Smith, communications director at AIC, commented: "The general public and active investors’ optimism in the housing market could well be misplaced as there is increasing evidence that the housing market is slowing down following five rate rises and the recent credit crunch."

The AIC, founded in 1932, represents the interests of the investment trust industry.