92% Proportion of British homeowners who believe prices will rise over the next six months
Bullish figures confound uncertainty over EU vote
Confidence in the property market remains high according to recent research by sales and lettings portal Zoopla.
Despite fears over the uncertain consequences of a UK exit from the European Union 92% of British homeowners expect house prices to rise over the next six months.
Nationally, the average expected increase is 9.5% with Londoners the most optimistic in predicting a 12.5% rise.
The firm also found that despite recent forecasts of a market cool-down and speculation around what impact the upcoming EU referendum could have on house prices, homeowners expected their own properties to increase in value by 8.8% – 2% more than the rise they anticipated when the survey was last taken in October 2015.
Zoopla spokesman Lawrence Hall said: “Despite uncertainty around the upcoming EU referendum, this does not appear to have knocked consumer confidence levels.
“As you’d imagine, those who live in regions that have seen the most marked property value increases over the past few years, such as London, the East Of England, and the South East, have the most confidence in further value rises over the coming months.
“What is slightly surprising is the number of homeowners that believe it is now more difficult to secure a mortgage rising to a third [from a quarter last year] despite historically low mortgage rates.
“This could indicate that the supply of low mortgage rates could be about to reduce as lenders try to pre-empt the Bank Of England’s movements regarding the base rate.”
Nearly a third (32%) of Zoopla users asked said it was harder to get approval for a mortgage now than it was six months ago – this figure is up 6% from when the survey was last taken. Around 8% said they were planning to refinance their house.
The research also found that nearly half of homeowners (44%) are planning to improve their properties in the next six months –a 3% rise on October. Almost half (41%) of homeowners also planned to spend more on home improvements this year compared to the last 12 months.
City of optimism: Homeowners in London predict a 12.5% rise in house prices over six months