Market confidence high in southern England but less so elsewhere

The latest housing market confidence index measured by agency Knight Frank says householders in every region of the UK expect their property price to rise in the next year - but confidence in the south of England far exceeds that in any other area.

Some 16.9 per cent of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while only 6.3 per cent said that prices had fallen. 

However, Knight Frank says that while the headline index rose month-on-month, there were still significant regional variations with households in the south of England comfortably more confident that prices will rise than those in the north of England, Scotland and Wales.

The index also remains well below its previous achieved in May 2014, reflecting the more uncertain economic outlook.

“This chimes with the increased economic uncertainty as the UK starts to negotiate its way out of the EU. However, opinions on the housing market are also formed at a local level, and in many cases markets are characterised by a lack of supply of homes to purchase, which is underpinning pricing” according to Gráinne Gilmore, head of UK residential research at Knight Frank.

Tim Moore, senior economist at IHS Markit - which conducted the survey - says the strength of the rebound after the Brexit vote is moderating. “Households are also relatively cautious about the outlook for house price growth in 2017, suggesting that heightened economic and political uncertainty remain headwinds to confidence” he suggests.