Households are more optimistic that the value of their home will rise over the next year than at any time since 2010, according to the latest House Price Sentiment Index produced by Knight Frank and Markit, a leading economics consultancy.
The jump in the future HPSI, from a six month low of 50.5 in October to 55.9, came just weeks after economic data suggested that the UK economy emerged convincingly from recession, perhaps prompting a more upbeat outlook among households. Any figure over 50 suggests prices will grow, and the higher the figure the greater the growth. Any figure under 50 signals a fall.
Households in every region except Wales (45.2) expect the value of their property to rise over the next 12 months. London leads the way (63.3), followed by the South East (61.1), but perhaps more notably, households in the North West (53.8) are expecting price growth for the first time in more than six months.
Those aged 55 and over still remain the most cautious in their outlook for prices (53.6), although this is the first time respondents in this age bracket have said they are expecting price rises since June.
Those in the 25 to 34 age bracket, the typical age for a first time buyer, expect the biggest price rises, perhaps reflecting the increased challenges they face in order to climb onto the housing ladder.
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