Homeowners Confident in the Performance of the Property Market over the Next Six Months
The vast majority of homeowners in Britain are confident in the performance of the property market over the next six months, according to Zoopla’s latest housing market sentiment survey.
Confidence in the market is growing, with 81% of homeowners expecting property values in their areas to increase before the end of the year.
Confidence was particularly high in Yorkshire and the Humber, and the North West, where 91% of respondents said that they expected house prices to rise over the next six months.
At the other end of the spectrum, London is the least confident region, with just 67.2% of homeowners in the capital expecting growth.
Of those expecting house price growth across the UK, the average level of growth anticipated is 4.8% over the next six months.
However, it was those in Scotland that were the most confident in the property market, as homeowners north of the border believe that house prices will increase by 5.5% before the end of the year.
The North East was next, followed by the West Midlands, with homeowners in these two regions expecting growth of 5.4% and 5.1% respectively.
The lowest level of house price growth expected was in the North West, at 4.45%.
Laura Howard, the Spokesperson for Zoopla, says: “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%.”
She continues: “A staggering 91% of homeowners in Yorkshire and the 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%.”
Howard believes: “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 agents’ 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.”
