Property sentiment remains high in the UK in May

Property sentiment remains high in the UK in May [Photo: cnythzl via iStock]

The overall household sentiment around the property market has remained high this month, with many owners of the belief that their home has risen in value across the course of the May, it has been reported. 

In the latest market index released by Knight Frank and Markit Economics, as many as 25.6 per cent of respondents said they believed their property to be worth more than it was a month ago. This compared to just 3.6 per cent of homeowners who believed their assets to be worth less than they were in April. 

This gives an overall index reading of 61.0 for May, which puts it slightly ahead of the 60.1 reading recorded in April, and suggests that the market continues to grow, and that people are increasingly confident about the future prospects of assets they currently own. 

However, the sector does still have a way to go to reach previous sentiment heights. Two years ago, this period saw the peak sentiment level of 63.2 reached, and the market will need yet more improvement to bring owners back to this level of confidence. 

In longer terms, the sentiment is picking up when compared to the quarterly average achieved previously. As of the end of May, the three-month sentiment reading sits at 60.6. This is a marked rise from the 59.2 reading that was in evidence in the quarter that came before. 

Gráinne Gilmore, head of UK residential research at Knight Frank, said that the fact we have such a positive reading at a time when the property sector is facing a period of uncertainty in the shadow of the looming EU referendum can only be a positive. 

"There is still an imbalance between demand and supply of housing, and for those with access to deposit payments, mortgage rates are still near record lows. However, there has been some softening in sentiment among those aged 55 and over, the age-group who have the largest equity stake in the UK housing market," she added.