The majority of households across the UK perceived that the value of their home increased in May, according to the latest House Sentiment Index soon to be published.
Property consultancy firm Knight Frank & Markit Economics released some of the findings of their latest House Price Sentiment Index (HPSI) stating that 25.6% of the 1,500 UK households surveyed believed the value of their home to have risen over the month of April. Conversely, only 3.6% of all households thought that prices had fallen.
The index calculates the percentages of respondents that report an ‘improvement’, ‘no change’ or a ‘decline’ and produces a reading that varies between 0 and 100, with readings below 50.0 indicating a decline in sentiment.
May’s HPSI was found to read 61.0 – an increase of 1.5% from April’s HPSI reading of 60.1. Although May’s HPSI reading signals a pick-up in sentiment, the reading is below the peak of 63.2 that was reached in May 2014.
Moreover, those aged 18-24 expressed a notable pick-up in perceived house price growth with the index increasing to 57.7 in May – up from 52.6 in April. On the other hand, Knight Frank & Markit report that sentiment fell among those aged over 55.
The survey also measures what households expect the value of their home to be over a 12-month period and found that, in May, confidence rose slightly to 70.3, from 68.8 in April. South East homes showed the highest rise in confidence with an HPSI reading of 79.5, followed by those in London with 78.2 and the East of England with 77.9.