Households across the UK expect increase in home values over the next 12 months: Knight Frank

Households across the UK perceive that the value of their home has risen over the last month, according to the latest House Price Sentiment Index (HPSI) from Knight Frank and IHS Markit.

February’s reading was the seventh consecutive month that the index has been in positive territory and now stands at a new post-referendum high.

Some 19.9% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 4.9% said that prices had fallen. This resulted in a HPSI reading of 57.5, up from 55.8 in January.

Any figure over 50 indicates that prices are rising, and the higher the figure, the stronger the increase. Any figure below 50 indicates that prices are falling.

While February’s reading was at its highest level since the result of the EU Referendum, it’s worth noting that it remains comfortably below its peak of 63.2 reached in May 2014 mirroring the moderation in price growth which has been seen since then.

However, there remain fairly large regional variations. Households in ten of the 11 regions covered by the index perceived that the value of their property rose in February.

Key findings:

-Households across the UK perceive that the value of their home rose over the last month

-The perceived rate of house price growth rose month-on-month

-Respondents in ten of the 11 regions covered by the index believe the value of their home increased, led by those in London

-The future HPSI rose in February to a new post-referendum high

-Households in all regions expect the value of their home to increase over the next 12 months

Source: Knight Frank

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