92% Pro­por­tion of Bri­tish home­own­ers who be­lieve prices will rise over the next six months

Bullish fig­ures con­found un­cer­tainty over EU vote

The Wharf - - Property -

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

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