23 Jun

Housing market confidence continues? to grow?

Housing market confidence continues? to grow?

Confidence is continuing to improve in the UK property market, according to new figures.

Data from real estate company Knight Frank and Markit Economics shows that many households believe the value of their home rose in June and believe prices will continue to rise.

A survey of 1,500 property owners across the UK found 23.7 per cent of them feel the value of their home has increased, although 4.6 per cent felt values had declined.

It is the 27th consecutive month that the index has seen a reading above 50 and an overall result of a 59.5 suggests the uncertainty of the general election has passed.  

The research also looked at how households believe the market will continue to perform and concluded many households are now more confident that the value of their home will rise in the next year than at any time since December 2014.

Grainne Gilmore, head of UK residential research at Knight Frank, said: "Interest rates remain advantageous, with mortgage rates hitting record lows for those who can clinch a new deal. However the future house price index still remains below levels seen last year as constrained mortgage lending and affordability affect the market."

Chris Williamson, chief economist at Markit, added with the general election now completed, it is likely the housing market will benefit from political stability.

However, there are some regional differences in the performance of the market, with confidence less certain in Scotland and Wales due to the ongoing uncertainty about possible devolution and the impact on demand.ADNFCR-1222-ID-801792127-ADNFCR

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