Singapore Back to Real Estate News Homepage to RSS for this country

SG Property News

SG London price confidence rising

Property Here - Tuesday, May 21, 2013

Share to:

By Andrew Batt:

For only the second time since June 2010, London homeowners believe the value of their homes went up in the last month, and they expect them to carry on rising over the next year.

The latest Sentiment Index from Knight Frank and Markit showed the second-highest confidence level since summer 2010, with London’s householders more optimistic about property values than at any time since 2009.

But the regional picture is mixed. Londoners are the most optimistic that prices will rise, while those in Wales expect only a modest rise in the value of their property.

Tim Moore, Senior Economist at Markit, said: “At present it seems households are coalescing behind the view that property values are starting to rise after a prolonged period of stagnation. Improving mortgage conditions and a more favourable economic news flow helped underpin the latest climb in sentiment. For the time being at least, better mortgage affordability is acting to offset the underlying drag from weak UK labour market conditions.

“The recent extension of the Funding for Lending Scheme is expected to boost secured lending to households and generate a pick-up in mortgage approvals over the months ahead.

“Relatively strong price expectations among first-time buyers are apparent in the latest survey, which adds to the evidence that better credit conditions are gradually greasing the wheels of the property market.”

Gráinne Gilmore, Head of UK Residential Research at Knight Frank, said: “Optimism that the Government’s Help-to-Buy scheme will have a positive impact on house price movements remains strong this month, the index suggests, especially among first-time buyers.”

“While the headline data suggests a sea-change in sentiment over the future movement of house prices across the country, the regional data still shows a more patchwork picture.”

“Londoners are very upbeat about the possibility that the value of their home will rise strongly over the next 12 months, with a record-high future sentiment index reading. Their optimism may have been boosted by recent official data showing that house prices in London have risen by more than 9% over the last year.”

“On the other hand, households in the North East and Wales, while expecting house prices to rise, are predicting a much more modest increase.” 

This story was first published by PrimeResi.com and is reproduced as part of an editorial partnership betweenPropertyGuru Group and PrimeResi.com.



Andrew Batt, International Group Editor of PropertyGuru, wrote this story. To contact him about this or other stories email andrew@allproperty.com.sg