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September Sees Substantial Pick-Up in Household Confidence

With the UK embarking in its fourth month post-Brexit, confidence towards the property market is bouncing back quickly as new figures show the majority of households across the UK perceived the value of their home had risen in September.

With the UK embarking in its fourth month post-Brexit, confidence towards the property market is bouncing back quickly as new figures show the majority of households across the UK perceived the value of their home had risen in September.

Gathering responses from 1,500 households across 11 regions in the UK, Knight Frank and IHS Markit found some 20.8% believed the value of their home had increased in September, while 6.9% said prices had declined.


September’s House Price Sentiment Index (HPSI) resulted in a reading of 56.9 - indicating a significant pick-up in confidence from August, where the index reading was set at 51.4, and representing the largest monthly increase in the index in seven years.


Knight Frank’s ‘Future’ HPSI, or households’ expectations of property prices over the next 12 months, was also found to have increased. September’s ‘Future’ HPSI rose from 58.3 in August to 64.7, with anything above the 50 mark signalling an upward price trajectory.


Households across all of the 11 regions covered by the index remained optimistic about the future house price growth with those in the South of England more confident than those in the North, Scotland or Wales.


Commenting on the results head of UK residential research at Knight Frank Gráinne Gilmore said:


“House price sentiment is mirroring the broader pick-up in confidence after Brexit. This comes as initial data shows a continuing positive picture for both employment and economic output.


“The housing market is now entering the typically busier autumn season, with indications that activity is rising, especially in key urban areas.


“There is still uncertainty surrounding the next steps of how the UK will move to exit the European Union, and this could create some economic turbulence. Yet the fundamentals of the housing market remain unchanged, underpinned by limited supply and ultra-low mortgage rates. ”


In other news, new research has shown that property prices across the UK rose on average by 0.7% from August to September.