There's a positive vibe around the residential property market, with home values expected to surge by 7.8%, according to a Zoopla survey.
What's the latest?
Confidence in the property market is growing, with a poll finding that most homeowners expect properties in their area to increase in value over the next six months.
But, according to Zoopla’s latest ‘housing market sentiment survey’, just 18% of Brits intend buying a home within the next six months – a 7% decrease since last October.
It found that almost nine in 10 British homeowners (87%) believe that properties in their neighbourhood will rise in value by an average 7.8% over that period.
While there is ample confidence in the East of England, with 89% of those surveyed in the region expecting to see a boost in property values, there was a more cautious view in Wales where just 68% of homeowners expected a rise.
Why is this happening?
Lawrence Hall, spokesman for Zoopla, said it was ‘encouraging’ to see a boost in confidence for property price growth despite a continued period of political uncertainty.
He added: “However, despite this, we can’t ignore that there’s been a rise in reluctance to buy and sell properties.
“With the upcoming general election, it’s perhaps no surprise that people may be holding out to make a purchase or sale decision until June 8.”
Who does it affect?
Although overall confidence has increased, the poll revealed a fall in the number of those planning to buy or sell a property.
Just 18% of homeowners signalled their intention to buy a home before Christmas, while only 17% said they were planning to sell.
When it comes to securing a mortgage, though, respondents believed it was easier to achieve than 12 months ago. Only 29% said it was more difficult to gain approval – down 3% from April last year.
Sounds interesting. What’s the background?
Zoopla invited its registered users to participate in its housing market sentiment survey, which ran between April 18-21. There were 1,511 respondents, 1,148 of which were homeowners.
It found that while nearly nine out of 10 Brits anticipate property price rises, confidence has not yet returned to the levels seen this time last year (92%).
Homeowners in the East Midlands are the most optimistic about growth rates, expecting a double-digit rise of 10 per cent – up from 7.6% six months ago.
London came in close second, with locals anticipating home value increases of 9.9%.
Top 3 takeaways
- 87% of homeowners are confident of property price growth – up 4% since October 2016
- Just 18% of Brits plan to buy a home in the next six months
- Homeowners are confident of a 7.8% rise in property values
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