Confidence as homeowners expect price rises over the next 12 months

People in all regions expect of the UK expect the value of their home to increase over the next 12 months, according to new research by HIS Markit.

The latest month of the long-running survey shows that people in 10 of the 11 regions of the UK believed their own house price to have risen in the last 12 months.

This is the seventh month in which the index has been in positive territory and now stands at a post-referendum high.

Tim Moore, senior economist at IHS Markit, said “UK households are gaining confidence about the outlook for their property values over the course of 2017, driven by the improved economic backdrop, resilient labour market conditions and a continued boost from ultra-low mortgage rates. The upward direction of travel for housing market sentiment in February has seen property price expectations recover to levels seen just ahead of the EU referendum, with this pattern apparent among households in all UK regions.

“Brexit-related anxieties appear to have receded among buyers, but there remains a sizeable list of factors likely to keep a brake on price momentum during the year ahead. These include localised affordability constraints for first time buyers, generally subdued pay growth, and a renewed squeeze on household budgets from rising living costs.”

Jaime Wallden, senior director of Mansell McTaggart said that “we believe very firmly that over the medium to long term especially, property remains a solid investment. Those after the quick buck may often end up disappointed, but we believe for those looking for a long-term investment that offers capital growth, income and a roof over the head, property is hard to beat!”.