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Public Optimistic about Future House Price Rises

The majority of households across Britain expect house prices to continue rising over the next year, reports a new survey.

The majority of households across Britain expect house prices to continue rising over the next year, reports a new survey.

Knight Frank & IHS Markit’s latest House Price Sentiment Index (HPSI) shows that 16.9% of respondents perceived the value of their home to have risen further in November, compared to just 6.3% of households that believed prices had fallen.


The survey, which gathers responses from approximately 1,500 individuals in the UK, resulted in a reading of 55.3 – indicating a positive house price trajectory over the month.


Whilst the reading represents a slight decrease from October’s 55.7, mirroring the wider house price trend, it marks the fourth consecutive month of an above-50 reading after the post-Brexit low of 48.3 seen in July.


The future HPSI, or household’s expectations for the value of their property over a 12-month period, increased significantly in November, from an index reading of 62.9 in October to 64.6 - signalling an overall rise in optimism for future house price growth.


Large regional variations exist, however, with households across the South showing more confidence that prices in the region will grow further over the year.


Commenting on the results, head of residential research at Knight Frank, Gráinne Gilmore said that whilst confidence of positive house price growth keeps on rising, households still “expect the velocity of this change to be lower than before June’s vote”, with Tim Moore, senior ecomomist at IHS Markit, suggesting that 'economic and political uncertainty after the Referendum vote remain headwinds to confidence'.


Earlier in the week, official figures released by the Department for Communities and Local Government reported an 11% annual rise in the number of new dwellings that came available to the market in 2015-16.

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