70 per cent of homeowners still believe prices will rise
17th November 2017
- 70 per cent of homeowners think local property prices will rise – down from 87 per cent in April 2017
- Anticipated property price growth rate has fallen to 4.9 per cent – down from 7.8 per cent
- London is the least confident region – just 62 per cent of Londoners expect values in their area to rise over the next six months
Homeowner confidence in the British property market has dipped, according to the latest “Housing Market Sentiment Survey” from Zoopla. Although 70 per cent of homeowners still expect house prices in their area to go up over the next six months, this figure has fallen by 17 per cent (from 87 per cent) since April. The research also shows that the anticipated rate of growth has declined, with homeowners predicting value rises of just 4.9 per cent compared to 7.8 per cent when the research was last conducted six months ago.
Regionally, homeowners in the East Midlands and Scotland are the most optimistic about their local property market; 79 per cent of respondents in both regions expect house price rises over the next six months. South West England is the third most optimistic region, with three quarters (75 per cent) of homeowners expecting an increase in their area’s property values. In contrast, London is Britain’s least confident region, with only 62 per cent of homeowners expecting rises – down 21 per cent since April. North East England and Yorkshire and The Humber are the second and third least confident regions, with 65 per cent and 67 per cent anticipating increases respectively.
In terms of the rate at which homeowners think local house prices will increase in value, this has slowed across every region. Those in the South West England are the most confident, with homeowners predicting properties in their area to rise in value by seven per cent over the next six months, compared to 8.6 per cent in April. Homeowners in Scotland are the second most confident, followed by the West Midlands, with the regions expecting properties to grow in value by 6.9 per cent (down 1.6 per cent) and 5.4 per cent (down one per cent) respectively. The lowest house price growth is expected in North East England, where homeowners anticipate a modest 2.8 per cent increase – a significant decline from 6.4 per cent in April.
The survey also reveals that obtaining mortgage approval is now perceived to be more difficult than it was earlier this year. Almost a third (32 per cent) of homeowners believe it is now harder to get approval for a mortgage than it was in April (an increase of three per cent).
Further research from Zoopla suggests that this trend of lower expectations in the property market reflects general consumer confidence in the economy. Its “State of the Property Nation” report, which was issued last month, found that just 31 per cent of consumers now feel positive about the economy, a four per cent decline year-on-year. The report also reveals that lower confidence levels are leading to many Brits delaying moving home due to expense. This reticence amongst consumers is potentially taking 22 per cent of people out of the property market – 10 per cent more than this time last year.
Lawrence Hall, spokesperson for Zoopla, comments: “Despite a dip in sentiment, the majority of homeowners are confident in house price growth in their area, albeit at a slower rate than previously experienced. This period of uncertainty could be good news and an opportune moment for first time buyers who are hoping to get a foot on the property ladder.”
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For further information, please contact Tim Vooght at email@example.com or on 020 3872 5615.
Notes to editors
Zoopla is the UK's most comprehensive property website, focused on empowering users with the resources they need to make better-informed property decisions. We help consumers both find their next home and research the market by combining hundreds of thousands of property listings with market data, local information and community tools.
At Zoopla we are fans of transparency and everything we do is aimed at making the market more efficient for both property consumers and advertisers alike. Zoopla has rapidly become the UK’s leading online destination for property consumers to search for homes and do their market research and the favoured online marketing partner for UK estate agents, letting agents and property developers.
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