UK homeowners remain confident about the market headed towards 2017
Those who own homes in the UK are still confident that their properties will be worth more in 2017 than they were this year, with this future confidence fuelled by the recent rises the majority believe their homes have seen in 2016.
According to the latest study released by Knight Frank and IHS Markit, the past month has seen as many as 17.6 per cent of people feeling confident that their home has risen in value, compared to a little over five per cent who think their home is worth less than it was a month ago.
This is the fifth month in a row, according to Knight Frank, that the price of a home in the UK has generally been considered to be on the rise in the eyes of homeowners. The number of people who believed their home has seen no change at all in value over the last month was also at the highest for two years, giving the market a general index of 56, where anything above 50 represents rising values.
And although the majority of companies have estimated that house prices in 2017 will see growth on a more subdued level than we have enjoyed over the last few years, the report also shows that valuations will at least still be likely to be headed in the right direction in 2017.
Its index reading of 62.3 for 2017 shows that there are far more people expecting to see rises in the value of their homes than falls. However, this is down from the 64 recorded last month, and is largely in line with professional predictions of slightly slower price rises across the next year, with most forecasting rises of around two or three per cent.
Gráinne Gilmore, head of UK residential research at Knight Frank, said: "Households expect the value of their home to rise over the next 12 months, but at different rates across the regions, reflecting the multi-speed nature of the market in geographical terms.
"Overall the reading is for price growth, the typical trend over the last few years has been for the index to show that those aged over 55 expect larger increases in the value of their home than those aged between 25 and 34, reflecting the higher levels of home ownership among older people. This gap was reversed for three months after the vote," she added.