Zoopla's survey reveals the largest jump in consumer optimism in the housing market since 2016.
Homeowner confidence in the housing market has picked up, with the East of England the most upbeat region in the UK.
More than eight in ten homeowners now expect house prices to grow in their area, a 14% jump since November 2017, according to Zoopla’s latest Housing Market Sentiment Survey.
And consumers expect local property prices to rise by 6.9% over the next six months, up from 4.9%.
Lawrence Hall, spokesperson for Zoopla, said: “It’s encouraging to see a bounce-back in consumer confidence in the market – it’s the largest increase we’ve seen since 2016.
“This shows that homeowners are starting to regain their confidence in the property market, with those in the East of the UK having the most optimism.”
Why is this happening?
There could be a few factors at play. They include wider housing market activity, which traditionally gains momentum at this time of year. To date, 2018 is no different, according to RICS.
And in a boost to consumer sentiment, mortgage rates remain well below those seen in 2007, despite the increase to the Bank of England base rate in November.
Above: four-bedroom flat for sale in Highgate, London.
Who does it affect?
Homeowners in the East Midlands and the East of England are the most confident about their local housing market, with 93% and 90% of respondents respectively forecasting property price rises over the next six months.
In contrast, homeowners in North East England are the least optimistic. Only 63% of respondents in the area predict property price increases – although this is still a 22% jump since last November.
Meanwhile, 76% of London homeowners anticipate house price growth in the capital.
What’s the background?
Homeowners in the West Midlands are the most optimistic about the rate at which local house prices will increase in value over the next six months. They anticipate properties in the region to grow by 10.6%, compared with just 5.4% last November.
Once again, homeowners in the North East are the most downbeat of all the regions, predicting a property price uptick of 2.6%.
Despite the overall rally in consumer confidence, the bulk of homeowners are not planning to spend more on home improvements and fewer people are expecting to refinance a mortgage.
Top 3 takeaways
- More than eight in ten homeowners expect property values to increase in their area over the next six months
- Consumers expect property prices to rise 6.9% in their region, up from 4.9%
- Homeowners in the East Midlands and the East of England are the most upbeat about their local property market, while those in the North East are the least optimistic
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