Sentiment on house prices moderates
UK households think that property prices are still rising but at a more moderate pace than previously, according to Knight Frank/Markit’s latest monthly sentiment index.
Current price growth, as perceived by households, is lower than in any of the past 12 months.
UK households think that property prices are still rising but at a more moderate pace than previously, according to Knight Frank/Markit’s latest monthly sentiment index.
Current price growth, as perceived by households, is lower than in any of the past 12 months.
And while expectations for future price growth have strengthened, they remain lower than May’s record-high.
Grainne Gilmore, head of UK residential research, said: “While positive sentiment still dominates the UK residential market, there is a clear shift towards a more moderate view of current and future price growth potential. The general downward trend in both of our indicators presages lower price growth across the UK in 2015, in line with our forecasts.”
Among the regions, Londoners expect prices to rise most strongly over the next 12 months, with households in the North West having the least positive outlook.
Tim Moore, senior economist at Markit, said: “As we head into the winter, short-term factors dampening UK house price sentiment include the less favourable economic newsflow, stretched affordability amid weak underlying pay trends and, at the upper end of the market, a degree of hesitancy ahead of next year’s General Election.”
