Homeowners Increasingly Optimistic About House Prices

A survey by property website Zoopla shows that the majority of homeowners are optimistic about house prices rising over the next quarter.

This view is supported by the new House Price Forecast from reallymoving, which predicts that property prices will rise across the country over the next three months by as much as 9%.

The figures

The survey of 2,000 people registered on Zoopla showed that an average of 81%, or four in five homeowners, believe that property prices will increase over the short term.

This optimism varies by region, with those in Yorkshire and the Humber most optimistic about their local property market, with 91% of homeowners in both areas expecting house prices during the rest of the year.

Scotland is the third most optimistic region, with 90% of homeowners expecting an increase.

Londoners are the least hopeful about price rises, with only 67% believing that house prices are likely to rise in the near future.This follows a period where house prices have declined after years of predictable and steep rises.

Price changes

The optimism of those in Yorkshire and the Humber may be due to recent annual growth in house prices.

They have showed the greatest growth in the year to March 2019, rising by 3.6%, according to the latest data from the Office for National Statistics and the Land Registry.

The Zoopla survey showed that the average homeowner expects prices to rise by 4.5% over the next six months.

In London, house prices have dropped by 1.9% over the same year, explaining their pessimism about future changes. However, those who believe that prices will rise also expect average rises of 4.5%.

Scottish homeowners are the most optimistic about the level of price rises, predicting a growth rate of 5.5% on average. The North East comes second in their prediction, with a rate of 5.4%, and both the East and West Midlands look forward to enjoying rises of 5.1%.

Zoopla’s view

Laura Howard, spokesperson for Zoopla, said: ‘Despite evidence of a slowing housing market and ongoing political uncertainty, homeowners remain optimistic about the future of property prices.

‘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.

‘Measured confidence in the housing market is also more likely to see homes marketed at the right price which, by its nature, generates demand.’

Reallymoving’s view

CEO of reallymoving, Rob Houghton says:

‘Prices agreed this spring will show in Land Registry data in the summer, yet our customers registering for home move services as soon as their deal is agreed are giving us unique insight into what lies ahead for the housing market.

‘Annually, average UK prices have been falling since the start of the year but in June we can expect prices to see a return to positive growth with a rise of +1% year on year, followed by 0% change in July. This suggests that a strong market performance over the spring will see prices make up the value lost in the first part of 2019 and are set to recover to 2018 levels this summer.’