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Housing sentiment remains strong post-Brexit

Wednesday 26th October 2016

The latest House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit has revealed that households across the UK perceive that the price of their home increased in October, the third successive month the reading has been above 50 following the index's post-Brexit low in July. 
 
The research found that 10 out of 11 regions covered by the index perceived price rises over the last month. 
 
Scotland was the only region where respondents didn't believe there had been any rise in the value of their homes compared to September, perceiving prices as unchanged. 
 
The region most confident about price rises was the South West, closely followed by those in the South East and London. 
 
While October saw a slight fall in the future HPSI, household sentiment in all regions is positive – with homeowners in all regions confident that the value of their home will grow over the next 12 months. 
 
“The index has dipped slightly in October, but the significant uptick in sentiment since the vote to leave the EU is highlighted by the data,” Gráinne Gilmore, head of UK residential research at Knight Frank, said. 
 
“This month, some 12% of households said they expected the value of their home to fall over the next 12 months, down from the 23% seen in the month after the Brexit vote. Some 18% expect a rise in prices, still some way below the peak of 30% back in May 2014, but significantly above the reading of 11.2% in July.” 
 
“Another signal of households’ rising confidence is that the proportion of those who would like to buy a home within the next 12 months has risen to 6%, up from 4.6% in October last year. “
 
She added: “The housing market across the UK as a whole is being underpinned by lack of supply and ultra-low mortgage rates.”
              

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