House price sentiment in UK remains positive

House price sentiment in UK remains positive [Image: AndreaAstes via iStock]

New research has revealed that households across the UK perceive that the value of their home has risen over the last month.

According to the latest House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit, it was the eighth consecutive month that the index has been in positive territory.

Some 20.8 per cent of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 5.9 per cent said that prices had fallen. This resulted in a HPSI reading of 57.5, which was unchanged from February.

However, it was also revealed that there are still fairly large regional variations, which reflects the wider housing market. According to the index, households in nine of the 11 regions covered by the index thought that the value of their property rose in February.

Those in the south east reported the biggest rise over the course of the month, posting an index figure of 64.4, which is above the positive level of 50. This was closely followed by those in London, where the index sat at 64.

Homeowners in the north east and Wales were the exceptions, according to the index, with households reporting a slight fall in prices over the month.

Oliver Knight, an associate in Knight Frank’s residential research team, said: “The latest survey data suggests that house price sentiment across the UK is becoming steadier. Households still report that values are increasing, but at a more modest pace than before the EU Referendum, which is consistent with wider housing market trends.”

He went on to add that future price expectations are still positive, particularly in the south of England and the Midlands, but he said there are “a number of headwinds which could weigh on the market”. He pointed to rising inflation and continued effects from Brexit as examples.