Consumer confidence increases by 5% in February

Consumers' confidence in the housing market has increased for the second time this year with a jump of 5% in February.
The Woolwich index shows that 45% of homeowners believe their property will continue to increase in value compared to 40% in January.

Andy Gray, head of mortgages at Barclays and Woolwich, says: "These figures are the strongest indication yet of a housing market on the rebound, after bottoming out in the last six months of 2004.

"Potential buyers have been waiting for the market to stabilise before they buy and now would seem to be the time when their confidence is starting to return, as interest rates have been remained unchanged for seven months in a row.

"The next few months are traditionally a time of increasing buying and selling in the housing market, as people shake off the winter blues."

While still lower than the three-year average for February of 57%, this increase in confidence signals that people believe the UK housing market has turned a corner.

However, confidence levels still have some way to go after falling by 25% between June 2004 and January 2005.

The North East and North West recorded rises of 9%, while Scotland remains the most confident region at 53%, a rise of 3%.

The only area with lower confidence is in the South West, down from 39% to 37%. In London, the single largest market for property, confidence rose by 4% to 40%.