House price sentiment continues its post-Brexit recovery

House price sentiment continues its post-Brexit recovery [Photo: merron via iStock]

Homeowners across the UK's property market feel positive about the future value of their homes in the coming months and their recent performance, according to the latest index, which suggests that since Brexit, there has been a continued rise in sentiment among owners. 

When the Brexit vote was announced in late June last year, Knight Frank and IHS Markit reports, there was an immediate drop in sentiment, and July saw a marked contraction of positivity in the sector from owners. 

However, since then, there has been little but growing sentiment among those operating in the sector, and according to the latest report from the two organisations, January marks the sixth month in a row that house price sentiment in the UK has grown. 

In January, as many as 17 per cent of UK homeowners said they believe the value of their home has increased over the course of the last month, compared to just five per cent who believe it has fallen, giving a house price sentiment index (HPSI) of 55.8.

And although this reading was a little lower than the 56.1 that was recorded in December of 2016, it remains far ahead of the 48.3 recorded back in July. January also saw positive sentiment in as many as ten out of 11 regions, which suggests overall market health spread across the UK. 

In terms of future HPSI, which measures what people expect to happen with the value of their homes across the next year, the reading was at 65.1, even higher than the 62 that was measured in December last year. 

Gráinne Gilmore, head of UK residential research at Knight Frank, said: "The continued rise in the future sentiment index indicates that households are not focusing solely on the uncertainty around the path to Brexit."