Home owners in the North of the UK are more confident about the housing market outlook bit overall the vast majority nationwide expect prices to increase in the next six months, the latest sentiment survey suggests.
Some 80% of home owners believe that prices in their area will rise before the end of 2019 by as much as 4.8%, according to the survey from property portal Zoopla.
Those in Yorkshire and Humber and the North West are the most optimistic about their local property market and 91% of respondents in both areas expect house price rises over the next six months, followed by those in the North West at 90.5% and Scotland at 90.3%.
In contrast, London is the least confident region, with only 67% of home owners expecting prices to rise, followed by the North East with 78% and the South East with 74%.
When it comes to the rate at which homeowners think local house prices will increase in value in their area, those in Scotland are the most confident, with home owners predicting properties in their area will rise by 5.5% over the next six months.
They are followed by homeowners in the North East predicting a rise of 5.4%, while people in the West Midlands and East Midlands think prices will rise by 5.1%.
Home owners are least optimistic in London, where 32.8% predict house prices will drop during the next six months, losing an average of 6.7% of their value and those in the South East are also downbeat, with 26.1% expecting price falls of around 6.1%.
Despite this, there are still more people in these regions who expect the cost of property to continue rising than those who expect it to fall, with 67.2% of people in London and 73.9% of those in the South East expecting price rises.
The biggest price falls were predicting in the North West, where those who think property values will decline expect them to be 8.5% lower in six months’ time.
‘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,’ said Zoopla spokesperson Laura Howard.
‘This not only brings buoyancy to the housing market, but also offers an opportunity for agents. Vendors fuelled with optimism for house price growth will need to listen carefully to the advice of their estate agents when looking to sell their homes, relying on agent’s local market expertise and experience to accurately price their properties,’ she pointed out.
‘Consumer positivity must be channelled to ensure that pricing is correct from the outset, this is vital for a swift sale at a price that’s as near to asking as possible,’ she added.
