UK House Price Sentiment Rises To 8-Month High In June - Markit
06-20-2015
Sentiment among U.K. households concerning house prices increased for the twenty-seventh consecutive month in June, improving to an eight-month high, as households expects that any uncertainty caused by the general election has passed, a survey from Knight Frank and Markit Economics showed Friday.
The house price sentiment index, or HPSI, rose to 59.5 in June from 58.0 in the previous month. This marked the twenty-seventh successive month that the index remained above 50, a level separating rise and decline in prices.
Despite the increase, the index remains well below its record high of 63.2 achieved in May 2014.
The future HPSI, a measure of expectations on house prices for the next year, also rose to 70.5 in June from 70.0 in May. The agency noted that households are now more confident of a rise in the value of their home in the next 12 months than at any time since December 2014.
Expectations regarding future house price rises accelerated to a seven-month high in London, with the respective index rising to 78.2 from 77.7 in the preceding month.
Households in the East of England were most confident about future price rises, although the corresponding index fell for the second consecutive month to 75.0 from 77.8 in the prior month.
The share of UK households planning to buy a property in the next twelve months rose to 6.6 percent in June from 6.4 percent in May. Individuals aged between 25 and 34 are the most likely to consider buying a home in the short term followed by those aged 35 to 44.
"Households' expectations for house price rises have reached the highest level this year as the results of the General Election provide some clarity on the outlook for the housing market and household finances. Interest rates remain advantageous, with mortgage rates hitting record lows for those who can clinch a new deal," Grainne Gilmore, Head of UK Residential Research at Knight Frank said.
"However, the future house price index still remains below levels seen last year as constrained mortgage lending and affordability affect the market."
by RTT Staff Writer
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