Confidence in the housing market remains high with homeowners expecting property prices to increase by 4.8% in the coming six months.

Despite the recent slowdown in house price growth, 81% of people think property values will increase in their area, according to Zoopla.

But there was significant regional variation, with homeowners in Yorkshire and Humber most likely to predict further price rises at 91%, while a third of people in London expect house price falls.

Those in the northern regions tended to be more optimistic about the outlook for the housing market, while those in southern ones were most likely to expect a downturn.

Laura Howard, spokesperson for Zoopla, said: “Despite evidence of a slowing housing market and ongoing political uncertainty, homeowners remain optimistic about the future of property prices.”

Where are homeowners most optimistic?

Homeowners in Yorkshire and Humber were most likely to expect house prices to increase in the next six months at 91%, followed by those in the north west at 90.5% and people in Scotland at 90.3%.

People in Wales were also optimistic, with 89.5% anticipating further growth.

In terms of actual price growth, those in Scotland are expecting the biggest gains of 5.5% in the coming six months.

They are followed by homeowners in the north east at 5.4%, while people in the West Midlands and East Midlands think prices will rise by 5.1%.

Where do people expect to see house price falls?

Homeowners are least optimistic in London, where 32.8% predict house prices will drop during the next six months, losing an average of 6.7% of their value.

Those in the south east are also downbeat, with 26.1% expecting price falls of around 6.1%.

Despite this, there are still more people in these regions who expect the cost of property to continue rising than those who expect it to fall, with 67.2% of people in London and 73.9% of those in the south east expecting price rises.

The biggest price falls were predicting in the north west, where those who think property values will decline expect them to be 8.5% lower in six months’ time.

What’s the background?

Latest UK Cities House Price Index suggests homeowners may be too optimistic, with this showing property price growth had slowed to just 1.7% in the 12 months to the end of April across the UK as a whole.

That said, homeowners in Yorkshire and Humber who are predicting price rises of 4.5% are not too wide of the mark, with property values in Sheffield currently rising at an annual rate of 4.4%, while in Leeds annual house price inflation is running at 3.5%.

It is also no surprise that people in London are the least confident, with property values in the capital falling by an average of 0.5% during the past year.

Howard points out that even if consumers’ forecasts fail to prevail, sentiment still plays a crucial role in the health of the housing market.

She said: “A feeling of stability means buyers are more likely to start actively looking for their next home, confident that now is the right time to make a purchase. And, in turn, an active pool of buyers will encourage sellers to list their homes for sale.

“Measured confidence in the housing market is also more likely to see homes marketed at the right price which, by its nature, generates demand.”

Top 3 takeaways

• Homeowners expect property prices to increase by 4.8% in the coming six month

• 81% of people think property values will increase in their area, with people in northern regions more optimistic than those in southern ones

• Homeowners in Yorkshire and Humber are most likely to predict further price rises at 91%, while a third of people in London expect house price falls.

High rents are preventing young people from moving to better paid jobs with mobility nearly halving during the past two decades.

Only 18,000 people aged between 25 and 34 started a new job and moved to a new home in 2018, down from 30,000 in 1997, according to a report by the Resolution Foundation.

The group blamed the situation on the high housing costs young people face, which in many cases almost negated the higher salary they would earn by moving to a different part of the country.

It found that once housing costs were deducted, the average private renter moving from a low-paying area, such as East Devon, to a mid-paying area, such as Bristol, would be just 1% better off, compared with being 16% better off in 1997.

The situation was even more extreme for someone moving from a low-paying area straight to a high-paying one, such as Croydon. While young people would have seen a financial gain of 26% in 1997 for making such a move, last year they would actually have been 3% worse off.

Lindsay Judge, senior policy analyst at the Resolution Foundation, said: “Young people today are often stereotyped as being footloose when it comes to work. But in fact, they are moving around for new job opportunities far less frequently than they used to.

“A key reason why people move around for work is the lure of a bigger salary. But increasingly those pay gains are being swallowed up by high housing costs.”

Why is this happening?

The report found people were less mobile despite a higher proportion living in the private rented sector, which is traditionally associated with enabling mobility.

Instead, it said the high rents they faced paying meant moving to a better paid job in a more expensive location often did not make financial sense or reduced the lifestyle uplift they would receive.

It pointed out that rents have risen fastest in higher-paying areas of the country, increasing by almost 90% in these locations, compared with a jump of 70% in places where pay was lowest.

The Foundation noted, however, that there were also likely to be non-financial reasons why young people weren’t moving, such as preferring to stay close to their parents and local networks.

If you're coming to the end of your mortgage deal and looking for a new fixed rate, your main options will be to fix in for either two or five years.

Traditionally, five-year fixed rates have come with higher interest rates than those charged on two-year deals, as homeowners pay for the longer-term security.

But the difference between rates for the two mortgage types now stands at just 0.36%, according to new research from Moneyfacts, which is the lowest differential in seven years.

The average interest charged on two-year fixed rate loan is now 2.49%, compared with 2.85% for a five year one.

Darren Cook, finance expert at Moneyfacts.co.uk, said: “It seems that the intense competition between lenders within the two-year fixed rate sector is also appearing in the five-year fixed rate market, with the average five-year fixed rate falling by 0.06% more than its two-year counterpart since January this year.”

What are the pros and cons of each deal length?

The main advantage of a five-year fixed rate mortgage over a two-year fixed rate deal is that homeowners have the security of knowing exactly what their monthly mortgage payments will be for the next five years, regardless of what happens with the Bank of England base rate.

At the same time, they do not face the hassle or cost of having to remortgage after just two years.

With mortgage arrangement fees on a best-buy two-year fixed rate loan currently standing at £1,995, homeowners could save themselves a considerable sum by fixing for a longer period.

What else should borrowers consider?

While the gap between a two-year and a five-year fixed rate mortgage may have narrowed, five-year deals are still more expensive.

A homeowner with a £200,000 mortgage would pay more than £450 more per year if they opted for an average priced five-year deal compared to a two-year one.

The other downside of five-year deals is that homeowners are locked into them for longer.

While this may sound like good news if interest rates are rising, it can become expensive if your circumstances change and you need to sell your home.

While many fixed rate mortgages are portable, meaning they can be moved to a different property if you sell your home and buy a new one, if you want to exit the mortgage altogether, you can expect to pay a hefty penalty.

So-called early redemption fees vary between lenders, so make sure you know what you are signing up to when you take out your loan.

As a general rule, lenders typically charge the equivalent of the number of years left on the loan as a percentage of the mortgage that is outstanding.

For example, if you have three years remaining on your fixed-rate term and £150,000 in outstanding mortgage debt you will be charged 3% of this sum or £4,500.

What about 10-year deals?

The average interest rate charged on a 10-year fixed rate mortgage has also fallen since the beginning of the year to stand at 3% now.

Although the difference between rates on a five-year and 10-year loan has widened slightly during that period, borrowers still only pay 0.15% more to fix their interest rate for a decade.

As with five-year deals, opting for a 10-year loan not only gives greater certainty but also potentially saves a significant sum on arrangement fees.

But with early redemption penalties as high as 7% of the outstanding mortgage sum if you need to exit in the first two or three years, borrowers need to be confident they will see through the term.

Some 10-year fixed rate mortgages have lower early redemption penalties, so it is worth bearing this in mind and shopping around if you opt for one of these deals.

Top 3 takeaways

• The gap between the cost of a two-year fixed rate mortgage and a five-year one has fallen to a seven-year low

• The rate differential between the two mortgages is now just 0.36%

• The average interest charged on a two-year fixed rate mortgage is 2.49%, compared with 2.85% for five-year deals.

Thousands of homeowners have been given the green light to extend their properties without having to apply for planning permission.

The Government introduced temporary rules giving homeowners more freedom to build extensions in 2013. It has now made them permanent.

The rules enable homeowners in England to build single-storey rear extensions of up to six metres on a terraced or semi-detached property and eight metres on a detached one without having to submit a full planning application.

Housing Minister Kit Malthouse said: “These measures will help families extend their properties without battling through time-consuming red tape.

“By making this permitted development right permanent, it will mean families can grow without being forced to move.”

Why is this happening?

The move is part of a package of reforms designed to help make the property market more efficient.

Not only will families have more certainty about the modifications they can make to their homes, but the Government is also scrapping restrictive planning rules for commercial property to make it easier for business owners to respond to changing trends on the high street.

Under so called permitted development rights, property owners will be allowed to convert shops into offices without having to go through the planning process.

Who does it affect?

The move is good news for homeowners who want to extend their existing property rather than face the cost and upheaval of trading up the ladder.

The Government sought to reassure anxious neighbours that the measures took into account the potential impact extensions would have on nearby properties, by limiting their length and height.

It is hoped that giving property owners the right to change shops into offices will also help to breathe new life into beleaguered high streets.

What’s the background?

More than 110,000 extensions have been completed since 2014 under the relaxed rules.

But homeowners should note that permitted development rights do not apply to flats or maisonettes, as well as to properties in certain ‘designated areas’, such as conservation areas, national parks and areas of outstanding natural beauty.

The Government has previously also proposed making it easier to extend properties upwards.

It launched a consultation last year on allowing spaces above shops, garages and car parks to be converted into homes, especially in areas of high demand.

It has set a target to have 300,000 new homes built every year, with 1 million properties added to the UK’s housing stock by the end of 2020.

But building levels still remain well below this figure, with only 165,000 new homes built last year.

Top 3 takeaways

• Thousands of homeowners have been given the green light to extend their properties without having to apply for planning permission

• The Government has made temporary rules giving homeowners more freedom to build extensions permanent

• The rules enable homeowners in England to build single-storey rear extensions of up to six metres on a terraced or semi-detached property and eight metres on a detached one without submitting a full planning application.

Owning a property could be the key to happiness, with homeowners reporting a greater sense of wellbeing than renters.

Those who own a property, either outright or with a mortgage, have higher levels of life satisfaction than people renting, regardless of tenure.

Social housing tenants were slightly more likely to be dissatisfied with their lives than those who rented in the private sector, although they were also more likely to be unemployed and in poor health, according to the Office for National Statistics.

Director of Benham and Reeves, Marc von Grundherr, said: “We’re a nation of aspirational homeowners and so it’s no surprise that those that have managed to reach the life mile marker of owning their own home will feel more satisfied with themselves, compared to those that remain resigned to a rental market plagued by issues of affordability.

“However, with employment levels at record highs and those listed as employed leading the way when it comes to homeownership, we should hopefully see more and more tenants make the jump to homeowner over the coming years and enjoy an uplift in life satisfaction when they do.”

What makes people happiest?

Perhaps unsurprisingly, people’s health had the biggest impact on happiness, with people reporting to be in good or very good health also having the highest levels of life satisfaction.

Age also had an impact, with younger people reporting high levels of life satisfaction, with happiness falling in middle age but rising again in people’s later years.

What role does money play?

Money plays a significant role in people’s level of life satisfaction, but not necessarily in the way you might think.

For example, having a higher level of household spending was more strongly related to feeling happy than having a high income.

The way people spent their money also appeared to have an impact, with those spending a higher share of their cash on experiences, such as nights in hotels and eating in restaurants, more likely to feel very satisfied with their life than those who spent more on food, insurance and mobile phone subscriptions, even if their overall level of spending was the same.

In terms of economic activity, perhaps unsurprisingly, people who were retired were happiest, while those who were unemployed or could not work due to sickness or disability were the least satisfied.

People’s economic status now has less of an impact on how happy they are compared with when the same research was carried out six years ago.

What about love?

Being married or in a civil partnership led to the highest levels of happiness, with those who were separated most likely to report feeling dissatisfied with their life, followed by those who were widowed.

People who were single were slightly more likely to be unhappy than those who were divorced.

Those with dependent children were also likely to feel happier about their lives than those who did not have children at home.

Marital status now plays a bigger role in how happy people feel compared with six years ago.

It also has a greater impact on their sense of satisfaction than their economic status.

Top 3 takeaways

• People who own a property, either outright or with a mortgage, have higher levels of life satisfaction than people renting, regardless of tenure

• Social housing tenants are slightly more likely to be dissatisfied with their lives than those who rented in the private sector

• Overall, people’s health, marital status and economic activity had the highest impact on how positively they felt about their life.

Enquiries to The Property Ombudsman hit a record high in 2018, and consumers have been handed almost £2.2m after making formal complaints about property agents.

The service, which is one of three ombudsmen that handles property-related disputes, received 29,023 enquiries during the year, 22% more than in the previous 12 months.

Out of these enquiries, 4,246 progressed to become formal complaints, 16% more than in 2017.

Two-thirds of these complaints were upheld by the ombudsman, with property agents ordered to make a financial award in nearly 2,400 of the cases.

In a small minority of instances, agents were referred to the ombudsman’s Compliance Committee for possible expulsion from the scheme.

Katrine Sporle, Property Ombudsman, said: "2018 was an extremely busy year for The Property Ombudsman with increasing demand for the service."

However, she added: "This does not necessarily mean that agents’ standards are slipping, but rather that consumers are increasingly aware of their rights."

Why is this happening?

The boom in complaints was driven by dissatisfied landlords and tenants, with issues relating to lettings accounting for 2,450 of the total complaints handled.

A further 1,304 complaints related to sales, while 349 were about residential leasehold management.

The rental sector also accounted for the largest financial awards, with compensation averaging £845, compared with £604 for issues relating to sales and £497 for ones about leasehold management.

Who does it affect?

Within the letting sector, landlords were most likely to be dissatisfied with the service they received from property professionals, with 54% of complaints made by landlords and 42% made by tenants.

For the third year running, Greater London accounted for the highest volume of complaints at 20%, followed by the south east at 17% and the north west at 11%.

People were most likely to complain about communication and record keeping, with management, tenancy agreements and inventories and deposits also common areas of grievance.

On the sales side, 60% of complaints were made by people selling a property, with 34% made by those buying one.

Record keeping was the most common cause of complaint in this area as well, followed by marketing and advertising, and instructions, terms of business, commission or termination.

The south east saw the highest number of complaints against estate agents, accounting for 16% of the total, followed by Greater London and the north west at 11% and 9% respectively.

What’s the background?

The Government recently ran a consultation on creating a single ombudsman services for the property market.

The sector is unusual in that it has three different ombudsman schemes, not all of which cover all aspects of buying or renting a home.

Other ideas floated include setting up a New Homes Ombudsman who will handle disputes between homebuyers and housebuilders.

In August last year, the Ombudsman Service, which also handled property disputes withdrew its services, after saying it no longer wanted to offer a “broken solution to a broken market”.

Top 3 takeaways

• Consumers were handed nearly £2.2m in compensation in 2018 after making formal complaints about property professionals

• The service received 29,023 enquiries during the year, 22% more than in the previous 12 months

• Out of these enquiries, 4,246 went on to become formal complaints, 16% more than in 2017.

Homeowners are taking longer to repay their mortgages than before the financial crisis, despite putting down bigger deposits when they first buy a home.

In 2007, the average homeowner had netted at least 70% equity in their property by the time they were aged between 51 and 55. But today borrowers are waiting five years longer to reach this milestone.

Younger borrowers are also putting down bigger deposits than they were a decade earlier, according to insurer Royal London.

The typical 18 to 25-year-old put down 10% to 15% as a deposit last year, compared with just 5% to 10% for the same age group in 2007.

Despite this, by the time homeowners are aged between 26 and 30, they are typically sitting on an equity stake of just 15% to 25%, compared with one of 25% to 50% for the same age group in 2007.

Becky O’Connor, personal finance specialist at Royal London, said: "Moving up the housing equity ladder helps you to access better interest rates and makes homeownership more affordable.

"But as the age of first-time buyers has risen, families are having to wait until later in life before they make a serious dent in their mortgage and can benefit from lower rates."

Why is this happening?

Royal London attributed some of the difference in equity levels to more stringent affordability rules introduced for lenders since the financial crisis.

And changes to the rate at which house prices are rising has also had an impact.

Homeowners accrue equity in their properties faster during periods of high house price growth, but in the current subdued market their main means of increasing the proportion of their property that they own outright is through mortgage repayments.

Who does it affect?

Borrowers are typically aged between 36 and 40 before they have at least a 25% equity stake in their home.

And it is not until homeowners reach the 51 to 55 age bracket that they own at least 50% of their property.

The proportion of borrowers above the state pension age of 65 who need a loan of between 30% and 50% of their home’s value has been steadily increasing since the financial crisis.

Last year, 27% of 66 to 70-year-olds were in this position, compared to 21% in 2009.

What’s the background?

While owning a bigger share of their property might make homeowners feel good, there is a practical and financial side to having a large equity stake too – mortgage rates are typically lower for people who are borrowing a smaller percentage of their home’s value.

A best-buy two-year fixed rate mortgage for someone with only a 10% deposit or equity stake is 1.84%, but this falls to 1.54% for someone with a 40% stake.

As a result, annual repayments on a £200,000 mortgage are more than £350 a year cheaper, giving homeowners more money to play with if they want to make overpayments on their loan.

Top 3 takeaways

• Homeowners are taking longer to repay their mortgages than before the financial crisis

• In 2007, the average person owned 70% or more of their home by the time they were aged 51 to 55, but today borrowers are having to wait five years longer to reach this milestone

• Younger borrowers are also putting down bigger deposits than they were a decade earlier