Homeowners confident of property price rises...but at a slower rate
19th October 2016
- 73 per cent of British homeowners confident of property price growth - down 15 per cent versus April
- Expected pace of growth has also fallen – homeowners anticipate property value increases of 6.9 per cent over the next six months (down from 9.5 per cent)
- Homeowners in East of England, East Midlands and West Midlands are the most optimistic, expecting property values to continue to rise
- Average anticipated price growth in London has almost halved versus six months ago
- Number of Brits intending to buy or sell a property over the next six months has increased
British homeowners remain confident of property price rises over the coming months but at a slower pace, according to the latest Housing Market Sentiment Survey from leading property website Zoopla. The most recent figures show that 73 per cent of homeowners believe properties in their area will continue to increase in value over the next six months – down 15 per cent (from 88 per cent) when the survey was last issued in April ahead of the EU referendum. The research also shows that homeowners expect a 6.9 per cent increase in property prices over the next six months, down from 9.5 per cent when the survey was last taken six months ago.
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 – notably higher than the national average (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.
Confidence in the property market appears to have dipped somewhat in the capital since April. Homeowners in London expect property values to increase by seven per cent over the next six months – down 5.5 per cent (from 12.5 per cent) versus April.
However, whilst confidence levels may appear to have declined slightly, the number of Brits intending to buy or sell a property over the next six months has increased. Whereas 21 per cent intended to buy when surveyed in April, 25 per cent of respondents say that they are planning to buy now. Similarly, the number of homeowners planning to sell a property has increased to 23 per cent from 22 per cent when the research was last carried out.
Getting a mortgage approved is also seen as easier than it was back in April. Only 28 per cent believe it is now harder to get approval for a mortgage than it was six months ago (down four per cent).
Lawrence Hall, spokesperson for Zoopla commented: “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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