UK house price sentiment remains positive
20th Apr 2012
UK property owners remain optimistic about the future of the country's housing market, a new report has revealed.
The Knight Frank/Markit's House Price Sentiment Index (HPSI) for April showed that, for the third consecutive month, households remain positive about what will happen to the value of their property over the next year, posting only just below March's 20-month high.
Approximately 29 per cent of households anticipate a rise in the value of their home over the next year, in comparison to 21 per cent who are expecting a decline, leaving the resulting index reading at 54.0.
Positive expectations for house prices were recorded in nine of the 11 major regions in the UK, up from six in March, with respondents in London remaining the most upbeat, as 62.2 per cent of people expect prices to rise.
This was followed by those in the south east, with 56.4 per cent of households expecting rises, and the East Midlands, with 55.7 per cent believing home values will increase.
Furthermore, the sentiment regarding future house prices was found to be broadly similar in both the private (54.3) and public (55.0) sectors, with the latter recording marginally stronger optimism for the first time in two years.
Grainne Gilmore, head of UK residential research at Knight Frank, said it is "interesting" that most people think house prices are likely to rise over the next 12 months.
"This confidence about future market movements is a welcome sign for the market – especially the breadth of confidence across the UK, with all but two regions expecting to see price growth in the near future," she added.
© Zoopla Property Group Limited