92% of British homeowners expect values to rise over next six months
22nd April 2016
- Nine in 10 (92 per cent) homeowners are confident their property values will rise over the next six months
- Homeowners across the country expect property values to increase by 9.5 per cent over the next six months
- London homeowners expect to see double digit property value growth (12.5 per cent) over the next six months
- 32 per cent (up from 26 per cent last year) of homeowners say mortgages are now harder to obtain than six months ago
Over nine in 10 British homeowners (92 per cent) believe that property in their area will continue to increase in value over the next six months, with an expected growth rate of 9.5 per cent, according to the latest Zoopla Housing Market Sentiment Survey.
The research also found that despite recent predictions of a market cooldown and speculation around what impact the upcoming EU referendum could have on house prices, homeowners expect their own properties to increase in value by 8.8 per cent over the next six months – 2 per cent more than the rise they anticipated when the survey was last taken in October 2015.
Regionally, homeowners in the East of England and South East England are most confident, with 96 per cent in both regions expecting the value of homes in their area to continuing rising in value. This is closely followed by London on 94 per cent. Londoners are the most confident in how much their property will increase in value, with homeowners in the capital expecting a double digit growth rate of 12.5 per cent for their area - considerably higher than the average expected for the rest of the UK (nine per cent).
The research also found that nearly half of homeowners (44 per cent) are planning to improve their properties in the next six months - a three per cent increase from October. Almost half (41 per cent) of these homeowners also plan to spend more on home improvements this year compared to the last 12 months. Meanwhile, eight per cent said they are planning to refinance their house.
Despite the high levels of confidence in the market, the survey found that getting a mortgage approved is a growing concern for British homeowners. Nearly a third (32 per cent) believe it is now harder to get approval for a mortgage than it was six months ago; this figure is up 6 per cent from when the survey was last taken in October last year.
Lawrence Hall, spokesperson for Zoopla commented: “Despite uncertainty around the upcoming EU referendum, this does not appear to have knocked consumer confidence levels. As you'd imagine, those who live in areas that have seen the most marked property value increases over the past few years, such as London, the East of England, and the South East, have the most confidence in further value rises over the coming months.
“What is slightly surprising is the number of homeowners that believe it is now more difficult to secure a mortgage rising to a third (from a quarter last year) despite historically low mortgage rates. This could indicate that the supply of low mortgage rates could be about to reduce as lenders try to pre-empt the Bank of England’s movements regarding the Base Rate.”
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