Householders are anticipating a jump in property prices over the next year, new research has revealed, with consumers expecting rates to shoot up at their fastest since January 2010.
The findings from the Knight Frank/Markit House Price Sentiment Index (HPSI) also found that the value of property rose over the last month at the fastest rate since the index was launched in 2009.
Price expectations are at their highest in London, where they have hit a record peak, while households in the North East and Wales are expecting a more modest increase in prices. Meanwhile, those householders aged between 45 and 54 were found to be most optimistic that house prices will rise over the coming year.
Householders believed that the value of their homes rose in September for the sixth consecutive month, according to the HPSI. More than 21 per cent of the 1,500 households surveyed across the UK reported that the value of their home had increased over the last month. This is compared to just 5.7 per cent who said the value had fallen.
These figures equate to a HPSI reading of 57.9. Any figure over 50 shows that prices are on the up - the higher the figure, the stronger the increase. This month’s figure is a significant jump from August’s reading of 55.3.
When analysed in a quarterly way, the reading rose from 56.7 in the three months to September. This is up from the three month period before, which had a figure of 52.
Gráinne Gilmore, head of UK residential research at Knight Frank, commented that while the headline future index has hit a three-and-a-half year peak, the regional picture is still mixed, with London and the South East enjoying much stronger rises.
“This reflects how the market is receiving the biggest boost where there is most demand for housing. This demand is not only underpinned by the strong economic base in London and the South East, but also by the fact that there is more housing equity in these regions, which in many cases may be filtering through to the sales market via the Bank of Mum and Dad,” he explained.
- Tuesday 24 September 2013