UK homeowners and investors looking to sell on their properties are feeling more confident that they will see the price they can bring in rising this year, according to the latest data released as part of a joint study between Knight Frank and Markit. It said that a record balance of 72.3 people are expecting to see their property prices heading up in the next 12 months. It is the highest level this figure has reached at any point since the survey was first started, as well as marking a substantial rise from the 70.5 who said they were feeling confident about increasing values in December of last year.
This index is calculated by subtracting the number of people who have a negative outlook from those who are feeling positive, showing the sizeable majority who are now feeling very confident in the new year. There are widespread expectations that house prices are set to rise across the U.K., with a particularly noticeable step up in house price expectations among households in the north east [of England]," said Grainne Gilmore, head of U.K. residential research at Knight Frank. "The improving economic picture, coupled with the government's Help to Buy scheme which is helping to boost activity levels in the market, is bolstering expectations of capital growth."
The two main drivers behind this swelling of confidence have been the availability of mortgage thanks to governmental help and the recovering economy, which is expected to expand by some 2.5 per cent this year. Other factors to consider include the fact that there are now record numbers of home buyers - the highest since the financial downturn - looking to purchase themselves a home as of December, according to the National Association of Estate Agents (NAEA).
Property prices could also be forced upwards throughout this year by the fact that there remains a shortage in supply. This lead, according to Countrywide, to there being 9.7 buyers chasing down every home that came to the market in 2013, which pushes the final sale value higher and higher.
Just how well does optimism drive the housing market? Read more on the house price optimism here
- Thursday 30 January 2014