As a result some 42% of home owners plan to invest in home improvements to capitalise on growth, according to the latest Zoopla Housing Market Sentiment survey.
It also found that there is a significant increase in the number of home owners planning to buy a property this year.
The survey of 4,972 UK home owners found that a record 95% expect house prices to rise over the next six months, up from 74% this time last year.
Some 3% of those surveyed stated that they expect prices to remain flat over the next six months and only 2% predict house prices will fall over that period, down significantly from 13% one year ago.
In anticipation of expected strong pricing gains, 42% of those home owners surveyed plan to carry out home improvements over the next six months. And stronger confidence in the housing market has also led to a sharp increase in those planning to move with 31% planning to buy a property in the next 12 months, up from 22% in January.
Londoners remain the most bullish about the health of the property market, with 97% of homeowners in the capital expecting house prices to rise further over the next six months and predicting average price growth of 12%, a third higher than the wider national average.
In a positive sign for the wider market, the largest jump in confidence was found in Wales where the proportion of owners who expect property prices to increase over the next six months has risen from 85% to 92% in just three months.
‘Home owners across the country are going one step further this year and planning to invest in more substantial home improvements. As properties receive more and more viewings from interested buyers, smart sellers are seeing all the signs of strong demand in the market and are looking to capitalise on potential capital gains to be had,’ said Lawrence Hall of Zoopla.
‘UK home owners are expecting house prices to rise at a higher rate than ever before, and this confidence in the property market recovery is finally filtering out of London and across the UK,’ he pointed out.
‘With prospective sellers eager to take advantage of a buoyant market and buyers wanting to snap up the best properties before they slip out of reach, indications suggest the market will remain strong over the coming months as increased supply and buoyed confidence drives activity on all rungs of the ladder,’ he added.
