Homeowner perceptions have an important impact on the UK housing market. Positive sentiment can actively lead to rising prices and judging by sentiment in the UK at the moment, it’s clear that the housing market is gaining momentum.
The latest House Price Sentiment Index from Knight Frank and Markit Economics shows that homeowners in the UK feel that the value of their homes rose in March.
The survey suggests that the UK property market is continuing to bounce back sharply, with house price sentiment hitting a fresh record high for the third time in the last four months. Households in eleven regions covered by the index reported perceived price rises in March, with those living in London feeling that the value of their home had risen at the strongest rate of all.
While households in all regions have reported rising house prices, the pace of growth varies greatly, with those in the North East reporting a slight uptake, compared to Londoners who reported the biggest increase in prices since the survey started in 2009. Although the latest data is now broadly consistent with annual UK house price growth, regional differences continue and the steep growth in London and the South East is boosting the UK wide picture.