Homeowners expect 7% price rise by summer

The latest Zoopla Housing Market Sentiment Survey found that 88% anticipate property prices in their area to rise by the summer, down from 92% a year ago, but consistent with last quarter as market confidence stabilises.

The East of England has the highest proportion of optimistic homeowners, with 91% anticipating property prices to carry on climbing in the first half of 2015. Confidence is least prevalent in the North East, but 82% of homeowners still expect house price growth between now and June.

Londoners expect the fastest rise in house prices, anticipating a further 9% boost in values by the summer. Homeowners in the north are more cautious, with those in Yorkshire & the Humber and the North West predicting a more modest 5% uplift in property prices over the next six months.

Recent indications of cooling house price growth have left an increasing proportion of homeowners worried about values dropping. Currently, 7% of property owners expect prices to falling during the first half of this year, an increase from just 3% at the start of 2014.  

Lawrence Hall of Zoopla.co.uk commented:

“The UK property market appeared to have changed its spots towards the end of 2014 – and the more sluggish pace of growth seen in the latter months was a very different beast to the lively price hikes of the spring. But homeowners don’t appear to have been seriously spooked, with consumer confidence standing firm. Encouraged by the vast gains they’ve already experienced this year, homeowners still expect to benefit from significant house price growth in the first half of 2015.”