Households in all UK regions perceive that the value of their home rose in October. Those in London and the South East perceived the strongest price growth over the course of the month. Households in all UK regions expect house prices to rise over the next 12 months, but the future house price index slipped to its lowest level since February this year. Some 4.6% of households expect to buy a property over the next 12 months, down from 5.9% in September.
Gráinne Gilmore, Head of UK Residential Research at Knight Frank, said:
“The slowdown in the house price sentiment index mirrors the easing in average house prices across the country, but the regional breakdown also underlines the regional and localised nature of the market, with households in London reporting much stronger growth than elsewhere in the country. The HPSI for London is some 17 points higher than the West Midlands.
“The number of people saying they are planning to buy a home within the next year fell to the lowest level recorded since we first starting asking this question in April 2014. This may not only be reflecting affordability concerns, but also the availability of stock on the market, as houses listed with estate agencies across the country remains close to record lows.”
Tim Moore, senior economist at Markit, said:
“October’s survey indicates a modest slowdown in house price sentiment since last month, with only London and the South East bucking the overall trend. Across the UK as a whole, perceptions of house price growth are the lowest since May, but still well above the levels seen prior to autumn 2013.
“Looking at expectations for future house prices, the North-South divide in England has reached its widest since the survey began in early 2009.
“On average in the North, around 28% of households anticipate a rise in their property value over the year ahead, while 9% expect a decline. By contrast, in the South more than half (57%) predict an increase in their house price during the coming 12 months and only 4% expect a decline.”
The full report can be viewed here.