UK homeowners expect to see the value of their house rise next year

UK homeowners expect to see the value of their house rise next year [Photo: PRImageFactory via iStock]

The housing market in the UK might have experienced some real challenges over the course of the past year, what with Brexit, the US presidential election and taxation changes causing waves within the sector, but it has held up relatively well considering. And as a result, those who own homes in the UK are confident about how their values will rise in the next year. 

In a new report from Knight Frank and IHS Markit, it was found that the UK's property sector has enjoyed positive confidence for each of the last five months, as it recovers from the initial Brexit panic, and this is only likely to improve further in the new year.

"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," said Gráinne Gilmore, head of UK residential research at Knight Frank.

In December, the 12 month sentiment forecast shows a 62.3 reading, where anything over 50 represents a positive and the potential for a house price rise. This was down slightly from the reading of 64 that was experienced in November this year, but still shows how positive the sector is moving towards 2017.

The data from Knight Frank shows that there are discrepancies at the moment in the market not just between different regions of the UK, but between people of different ages, who feel confident, but on different levels. 

"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," said Ms Gilmore.