The most recent housing market confidence index from agency Knight Frank has shown that property owners across Britain feel the value of their home will increase in the next twelve months.
Interestingly, market confidence is more prominent in the South East of England than any other region.
Confidence Rising
Of the 1,500 households surveyed, 16.9% said that the value of their home rose during the last month. Only 6.3% said that they had seen falls.
Knight Frank said that while the headline index rose month-on-month, there were still significant regional variations. Households in the South of England are much more confident than those in Scotland and Wales.
However, the Index is well below the confidence recorded in May 2014, which is a reflection of the uncertainty surrounding the market.
Housing Market Confidence Remains Uncertain
Lack of supply
Grainne Gilmore, head of UK residential research at Knight Frank, observed: ‘This chimes with the increased economic uncertainty as the UK starts to negotiate its way out of the EU. However, opinions on the housing market are also formed at a local level and in many cases markets are characterised by a lack of supply of homes to purchase, which is underpinning pricing.’[1]
Tim Moore, senior economist at HIS Markit, which conducted the investigation, said: ‘Households are also relatively cautious about the outlook for house price growth in 2017, suggesting that heightened economic and political uncertainty remain headwinds to confidence.’[1]
[1] https://www.estateagenttoday.co.uk/breaking-news/2016/11/confidence-high-in-southern-england-but-less-so-elsewhere