JUNE 11, 2019 | BY A & S Property
Property prices set to rise by 4.8% over the next six months
The vast majority of homeowners in Britain expect residential property prices to rise over the next six months, Zoopla’s latest ‘Housing market sentiment survey' has found.
Confidence in the market is growing, with some 81% expecting home values in their area to increase before the end of the year, which is good news for buy-to-let investors looking for a combination of capital growth and rental income.
Confidence in the market was particularly high in Yorkshire and Humber and the North West, where 91% of respondents said they anticipated house prices to increase over the next six months, the property website said.
At the other end of the spectrum, London is the least confident region, with just 67.2% expecting growth.
On average, those expecting price rises predict a 4.8% increase over the next six months.
But this level of anticipated growth is lower than the 5.2% increase in property prices recently recorded by Halifax in the year to May.
When it comes to the rate at which homeowners think local house prices will increase in value in their area, those in Scotland are the most confident, with homeowners who believe there will be a price increase predicting properties in their area to rise in value by 5.5% over the next six months.
Of those who do believe there will be a price increase, homeowners in the North East are the second most confident, followed by the West Midlands, with the regions expecting properties to grow in value by 5.4% and 5.1% respectively. The lowest house price growth is expected in the North West, where homeowners anticipate an increase of 4.45%.
Laura Howard, spokesperson for Zoopla, said: “Despite evidence of a slowing housing market and ongoing political uncertainty, homeowners remain optimistic about the future of property prices.
“Zoopla’s latest UK Cities House Price Index showed that house price growth slowed to 1.7% across the country’s 20 major cities in the 12 months to April, and to 2.2% across the UK as a whole. Yet, 81% of homeowning Brits expect property values to increase in their area over the next six months at the higher rate of 4.8%.
“A staggering 91% of homeowners in Yorkshire and Humber expect prices to rise in their region by the end of the year, at an average rate of 4.5%. This mirrors the pace of the markets in native Sheffield and Leeds which registered rises of 4.4% and 3.5% respectively, according to Zoopla’s Cities Index.
“Conversely, it’s no surprise that London homeowners are the least confident with prices in the capital falling by an average 0.5% compared to 12 months ago – the largest fall across all 20 cities. However, still more than two-thirds (67%) of London homeowners expect to see rises in the next six months – and of a considerable 4.5%.
“Whether or not these forecasts prevail, consumer sentiment plays a crucial role in the health of the housing market. A feeling of stability means buyers are more likely to start actively looking for their next home, confident that now is the right time to make a purchase. And, in turn, an active pool of buyers will encourage sellers to list their homes for sale.
“This not only brings buoyancy to the housing market, but also offers an opportunity for agents. Vendors fuelled with optimism for house price growth will need to listen carefully to the advice of their estate agents when looking to sell their homes, relying on agent’s local market expertise and experience to accurately price their properties. Consumer positivity must be channelled to ensure that pricing is correct from the outset, this is vital for a swift sale at a price that’s as near to asking as possible.”
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