Surveys
UK Householders Thought Property Prices Rose In April For First Time In Three Years - Knight Frank
UK households perceived the value of their property rose in April, for the first time in nearly three years, according to a new survey by global property consultants Knight Frank.
The Knight Frank/Markit House Price Sentiment Index shows house price perceptions rose for the first time since June 2010.
The proportion of homeowners reporting that the value of their home had risen was 11 per cent, while 9.9 per cent said the value had fallen. This gave an HPSI reading of 50.6, up from a reading of 50.0 in March. Any figure under 50 indicates that prices are falling, and the lower the figure, the steeper the decline; a figure over 50 indicates that prices are rising.
The future
The future HPSI, which measures what households think will happen to the value of their property over the next year, climbed for the fourth consecutive month in April.
The overall index reading for the UK jumped to 62, up from 58.4 in March. On a three-month average, the future HPSI reading was 59.2, up from 56.7 in the previous three-month period.
Regional outlook
Respondents in all regions expect the value of their property to rise over the next 12 months, with Londoners (70.8) leading the way. The biggest rise in confidence was in the North East, where the future HPSI reading jumped from 45.7 in March to 62.1 in April.
Young people were the most optimistic about house price rises over the next 12 months, particularly those aged between 25 and 34 (66.6), the highest reading since June 2010.
Optimism also rose at the fastest pace among those living in the private rented sector, or living rent-free with family, with the index for those renting privately jumping from 55.0 to 60.6 in April, marking the highest reading since May 2010. Mortgage borrowers were the most upbeat of any group, with an index reading of 65.3.
The Knight Frank/Markit House Price Sentiment Index survey was first conducted in February 2009 and is compiled each month by Markit. The survey is based on 1,500 individuals in the UK, with data collected by Ipsos MORI from a panel of respondents aged 18 to 64.
