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Confidence in Housing Market Future Grows for Seventh Consecutive Month

House prices will continue to grow in 2017 says the majority of households in the UK, according to a new survey.

UK Home Owners Confident of House Price Rise in 2017

House prices will continue to grow in 2017 says the majority of households in the UK, according to a new survey.

10 out of the 11 regions in England and Wales believed that their property had increased in price this February, achieving an average index reading of 57.5 – increasing from January’s reading of 55.8.

February’s House Price Sentiment Index, compiled by Knight Frank and IHS Markit, marks a seventh consecutive month of confidence growth.

The index utilises a baseline score of 50 to indicate no change from month to month, with figures above 50 indicating growing confidence and figures below demonstrating a fall.

19.9% of the households surveyed across the UK responded to say that the value of their home had risen over the course of the month, whilst 4.9% felt that property prices fell in their region.

Looking ahead, all regions felt that 2017 would see property values increase in their region, achieving an index score of 67.5 - the highest level since the UK voted to leave the European Union last June.

The South East and London were the regions exhibiting the highest level of confidence in house price growth, with scores of 76.4 and 74.5 respectively, despite the current challenges facing the housing market in the capital.

Commenting on the results of the survey, head of UK residential research at Knight Frank, Grainne Gilmore said:

‘The rise in household sentiment on house prices comes as a less cloudy picture of the UK economy starts to emerge … Home buyers and home owners are also benefitting from near record low mortgage rates, although affordability is an increasingly pressing issue in some areas.

‘It is noticeable that sentiment on the future direction of house prices has particularly picked up in the Midlands and East of England, with the index reading for February close to or stronger that the average reading in the three months before the EU vote.’

Yesterday, the latest government data revealed that the number of property transactions increased by 4.9% between December 2016 and January 2017, as buyer confidence increases following the referendum.

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