Property Market Optimism Steadies
Fewer homeowners are expecting a rise in the value of their property in the next 12 months, revealed research from Clydesdale and Yorkshire Banks.
Under half (49%) of survey respondents believe the value of their home will grow over the next year, compared to 54% in January and 55% a year ago. A further 49% predict that the price of their property will stay the same and 2% think it will decrease.
The study also found that homeowners in London are the most optimistic, with 73% forecasting an increase in the value of their home. This is followed by those in the South East at 62% and 56% in the East of England.
Contrastingly, 11% of respondents in the North East expect the value to drop and 6% of homeowners in the North West and Scotland are not positive.
For those predicting value rises, growing house prices is the key factor, alongside the economic recovery.
67% of homeowners in the South East and 64% in London name this as the main reason for expecting an increase in the value of their property. Just 37% of those in the North West said the same.
Director of Retail Banking, Steve Fletcher, says: “It has been a positive to see confidence returning to the property market, however, our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year.
“There are still a number of property hotspots, such as London and the South East, where property prices are rising and we anticipate that this will continue. However, this is not mirrored across the UK as a whole.”1