Expectations of capital value falls in the UK's residential real estate market have been recorded in a new survey. The Knight Frank/Markit House Price Sentiment Index revealed that homeowners have returned to a negative outlook for the coming year, with a quarter of respondents also believing that the value of their property dropped in October. Only seven per cent of those questioned felt that the price of their home had risen this month.
People in eight out of the 11 regions surveyed are anticipating a decline in the value of residential real estate in 2012, with those living in the north-east and south-west of England predicting the greatest falls. Head of residential research at Knight Frank Grainne Gilmore commented: "The sharp reversal in sentiment for future house prices came as a raft of disappointing economic data signalled that the UK was struggling to emerge from recession."
If the respondents to the HSPI are correct in their predictions, the UK real estate sector will continue to struggle. On a worldwide basis, the nation has not seen the largest price declines; however, it is still among the fallers. Research released by Global Property Guide relating to house prices in the second quarter of the year showed that dwellings in the UK shed 5.33 per cent of their value year-on-year. It was Ireland that recorded the biggest drop, seeing house prices plummet by 14.84 per cent.
- Monday 24 October 2011