Households appear to be more optimistic about the strength of the housing market despite Brexit and political and economic uncertainty, according to the latest Knight Frank Sentiment Index.
The index reveals that households across the UK perceive that the value of their home rose over the last four weeks - and that the increase was slightly more than occured in June.
Respondents in 10 of the 11 regions say the value of their home rose over the course of the month, and most households in all regions expect the value of their home to increase over the next 12 months.
These broadly optimistic findings come despite challenges in the industry, and well publicised in the general media, such as Brexit and coping with the uncertainties of a minority government.
However, the level of optimism is still comparatively modest says Oliver Knight, an associate in Knight Frank’s residential research team. He says: “While UK house price sentiment ticked up slightly in July it remains subdued in comparison to longer term trends. Households still report that values are increasing, but at a more modest pace than before the EU Referendum, which remains consistent with wider housing market indicators.”
Tim Moore, senior economist at HIS Markit, which helped create the index, says: “UK households continue to anticipate property price gains over the coming 12 months, especially those living in London and the South East. The latest survey signals a rebound in confidence for the first time in three months, but looking at the overall picture reveals that house price sentiment has shifted down a gear this summer.”