81% of homeowners feel that house prices will continue to grow over the next six months, according to a survey conducted by Zoopla.
While house price growth has been slowing, there is still an increase month on month in most areas of the UK and it is clear homeowners don’t expect this to stop any time soon.
In Yorkshire and Humber and the Northwest, 91% of respondents expected house prices to rise over the next six months. Despite confidence in the Northwest that house prices will grow, there is less confidence that the growth will be significant as the respondents provided the lowest prediction of a 4.5% increase.
Scotland comes in just behind with 90% of respondents confident of house price rises. Scotland is not just confident that the price will simply rise, they are confident of a high rise with Scotland respondents anticipating a 5.5% increase.
In London, only 67% of homeowners believe there will be a rise in house prices in the area, lower than South East (74%) and North East (78%). These are the three least optimistic areas in the UK. See South East property growth.
For those in the North East who are optimistic about the area’s chances, they are the most optimistic in the UK, predicting growth of 5.4%. This is great news for first-time buyers too.
Why are homeowners so confident?
The optimism levels across the UK seem to coincide with the recent house price growth statistics for each area.
For those in the North East who are confident, this confidence seems to be well-placed with a 5% increase reported between March 2019 and April 2019.
Scotland’s recent house price figures show an overall increase but it varies from area to area. While Stirling saw an increase of 8.4%, Aberdeen saw a decline of 6.2% so the fact that 90% of people who were confident might seem surprising given the two extremes.
The lower levels of price rise expectation in London are reflective of the recent trend in London where house prices have begun to decline; not dramatically but enough to shake confidence with a 1.2% decline in the 12 months to April 2019. See Surrey property.
Laura Howard, a spokesperson for Zoopla, points to homeowner confidence in house price rises as a driving factor that keeps house prices on the rise.
“Whether or not these forecasts prevail, consumer sentiment plays a crucial role in the health of the housing market.”
“A feeling of stability means buyers are more likely to start actively looking for their next home, confident that now is the right time to make a purchase. And, in turn, an active pool of buyers will encourage sellers to list their homes for sale”
Miles Shipside a director at Rightmove highlights how homeowners have moved beyond the fear and uncertainty of Brexit to carry on as normal where house prices continue to rise.
“The rise in new seller asking prices reflects growing activity as the market builds momentum, egged on by the arrival of Easter.”
He added: “They are often second-steppers out-growing their first property and it gets harder to postpone a move with growing children.
“They may have already delayed for a year or two waiting for Brexit clarity, and understandably their patience is wearing thin.”
Mr Shipside said the Brexit extension could also now give hesitating home movers encouragement “that there is now a window of relative certainty in uncertain times”.