Seems that homeowners in the UK are of the ‘glass-half-full’ mind-set at the moment.
Just 4% of homeowners in Britain expect to see house values decline in the next six months, a survey among 9,000 proprietors from property search website Zoopla shows.
A clear majority – 89% of respondents – are optimistic and believe that house prices will increase in the coming months. This confirms that the growing market sentiment that has now reached its highest level in the last four years. In the capital, the percentage of homeowners expecting a rise in home values was even higher, at 97%.
On average, British homeowners predict a 5% uptick in prices in the next six months. In London, values are forecast to increase at a stronger pace and go up by 8.3% in the short run.
Two-thirds of survey respondents also said that the level of sales in their local area is the reason why they believe property prices will keep increasing.
The results from the poll point to the buoyant confidence spreading across the market, which is a “bedrock” for healthy property deals, Zoopla’s market expert Lawrence Hill commented. The market is receiving a huge boost from the boom in mortgage lending and the return of first-home buyers to the market. Another driver is the launch of the second stage of the Help to Buy programme, which is expected to further support confidence countrywide. These factors will contribute to a sounder market and trigger a higher number of transactions, enhancing its sustainability, he said.
Although there was a rise in the percentage of homeowners projecting a spike in home values across all eleven UK regions, confidence is still higher in the South than the rest of the country, Zoopla noted.
As Britain’s economy turns a corner, how do you feel about the property market?