Homeowner confidence in the property market is on the up, though London still trails most other regions on optimism, according to new analysis by Zoopla.
The property website’s latest housing market sentiment survey found that more than eight in 10 homeowners now expect house prices in their area to grow in value – a rise of 14 per cent since the last survey in November.
Brits are predicting average property rises of 6.9 per cent in their area over the next six month, which has also risen from the 4.9 per cent expected during over the last six months.
The regions most and least confident in the property market
|Most confident regions||Percentage expecting property price rise||Least confident regions||Percentage expecting property price rise|
|1. East Midlands||93 per cent||1. North East England||63 per cent|
|2. East of England||90 per cent||2. London||76 per cent|
|3. South West||89 per cent||3. Yorkshire and the Humber||84 per cent|
Those in the East Midlands and the East of England were ranked most optimistic about their local property market, with 93 per cent and 90 per cent of respondents respectively expecting house price rises in the next six months.
The South West was ranked the third most optimistic region with 89 per cent of homeowners anticipating a rise in their area’s property values.
North East England residents were less confident, with 63 per cent expecting property price rises, though that was a still a marked rise of 22 per cent on the last time the sentiment survey was taken. The capital was also less confident than other regions, though 76 per cent of Londoners still expect property value to rise in their area in the coming months.
When it came to the rate at which homeowners were forecasting local house prices to rise by, that had also increased across the regions. Those in the West Midlands were ranked most confident here, with homeowners in the area predicting properties to rise in value by 10.6 per cent over the next six months. Scotland residents were expecting the second steepest increase in house prices, forecasting an average 9.2 per cent rise in property value.
The lowest house price growth was expected in the North East of England, where homeowners expected a 2.6 per cent rise.
Zoopla’s sentiment survey had 2,466 respondents, and also found that while there was a rise in confidence reported, the majority of homeowners were still not planning to spend more on home improvements over the next six months.
Source: City A.M.