UK property market confidence 'is RISING after Brexit vote' reports reveal
Posted on Oct 22,2016
UK property market confidence
CONFIDENCE in the UK property market is rock solid and rising in the wake of the Brexit vote, two reports have revealed.

Owners say the value of their homes rose in October - the third consecutive month that the House Price Sentiment Index reading has been above 50.

Those in 10 of the 11 regions covered by the research believe prices increased over the course of the month.

Gráinne Gilmore, of estate agent Knight Frank, which commissioned the study, said: “The significant uptick in sentiment since the vote to leave the EU is highlighted by the data.”

The survey showed a fall in the number of homeowners who expect the values of their properties to drop.

In July, a month after the Brexit vote the figure stood at 23 per cent. Last month it was just 12 per cent

The number that expect a rise in prices stood at 18 per cent some way below the peak of 30 per cent back in May 2014, but significantly above the 11.2 per cent recorded in July

“Another signal of households’ rising confidence is that the proportion of those who would like to buy a home within the next 12 months has risen to six per cent, up from 4.6 per cent in October last year,” she added.

Households in the South West are the most confident about price rises, followed by those in the South East and London

Tim Moore of market analysts IHS Markit, said: “The key message is that UK housing market sentiment has recovered strongly this autumn from the post-referendum jitters seen during the summer.

“There were signs of resilience across all UK regions, with households in the south of England most confident that property values will rise over the next 12 months.”

A second report found almost three quarters of British homeowners confident of property price rises over the coming months

According to the latest Housing Market Sentiment Survey from property website Zoopla. 73 per cent of believe properties in their area will continue to increase in value over the next six months.

Regionally, homeowners in the East of England, East Midlands and West Midlands are most optimistic, with 82 per cent, 80 per cent and 78 per cent of local residents confident of price rises respectively.

However, those living in the north appear to be more cautious, with just 60 per cent of homeowners in North East England and 64 per cent of those in Scotland, believing property values in their area will rise.

Looking at the anticipated rate of price growth, West Midlands residents hold the most faith in the property market.

Black Country homeowners expect property prices to go up by 8.4 per cent in their area over the next six months – higher than the national average of 6.9 per cent.

However, the least confident regions are again found in the north of Britain - Scotland and North East England expect a growth rate of just 5.1 per cent.

Lawrence Hall, of Zoopla, said: “Despite the political and economic uncertainty that Britain has faced over the last six months, it is reassuring that homeowners remain largely confident in the resilience and continued growth of the property market.

“Though anticipated growth rates may have slowed slightly, it’s encouraging that more homeowners are planning to buy or sell over the next six months and feel more able to achieve a mortgage approval than they did back in April.

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