The latest House Price Sentiment Index shows that UK house price sentiment remains positive across Britain. The Buy2Let Shop looks into the UK-wide survey which shows confidence in the current market.
The latest index from Knight Frank and Markit Economics shows that 22.5% of households surveyed in England and Wales believe that their house has increased in value since August. This usually indicates a market trend for house price movements, so it is expected that this upward curve will be reflected in the coming months.
A recording of 59.3 was found, with any score above 50 implying UK households feel positive about house prices. That’s the 30th month in a row where a positive score has been recorded, with more faith in the south (64.1) than in the north (54.9). Home owners in London and the South East of England indicated the highest amount of belief in the country that their house had gained value recently.
Effects for Buy-to-Let
It has recently been found that capital gains for landlords is the most valuable benefit to buy-to-let landlords, worth £67.2bn in 2014, in a market that continues to grow year-on-year. And this looks set to continue as the market continues to strengthen. The Buy2Let Shop recently reported about the increasing benefits in the UK Buy-to-let market.
The latest House Price Index indicates that house prices have risen by 5.2% to July 2015. Tim Moore, senior economist at Markit, pointed out that September’s positive out turn for UK house price sentiment marks two and a half years of recovery.
He said: “While perceptions of rising property values peaked in the first half of 2014, the index is still consistent with sustained house price growth across all UK regions”.
“Rising wage rates, sustained economic growth and an element of pent-up demand have combined with greater mortgage availability and stretched housing supply to support UK property prices this summer” added Moore.
“Meanwhile, households appear relatively positive about future property values, despite the prospect of a Bank of England rate hike in the first half of 2016, with almost half expecting rise in their house prices over the next 12 months and only 6% anticipating a fall,” he concluded.
Buy2Let Shop are the UKs leading estate agent for investment grade property and along with our sister company “The Buy2Live Shop” we offer professional and friendly services to vendors looking to sell their home to investors looking to build their portfolio.
Through our national advertising campaigns and huge network of contacts, we connect buyers with sellers and unlike most high street estate agents, we not only have a large number of listed buyers looking for find their dream home, we also have a database of retained investors, with proof of funds and finance in place.