Investors looking at UK property can be reassured by the market’s increasing confidence that house prices will rise following the EU referendum.
- Market uncertainty immediately following the EU referendum result has seen a recovery, with homeowners’ confident property values will increase
- Almost 20% of homeowners across the UK believe that the value of their home has increased in September
- It was the third consecutive month where the House Price Sentiment Index from Knight Frank saw a result about 50, demonstrating a positive sentiment
Confidence in the UK property market has increased following the vote for Brexit.
There has been a significant uptick in house price sentiment in the UK since the vote to leave the European Union, new research shows.
Some 18.4% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, according to the latest House Price Sentiment Index (HPSI) from Knight Frank and HIS Markit.
It was the third month in a row that the index was above 50 since the index reached a low point in July, just after the historic referendum vote, with a reading of 55.7.
Gráinne Gilmore, Head of UK Residential Research at Knight Frank, commented: “October’s figure is higher than the post-referendum average HPSI reading of 53.1 reflecting the general bounce back in sentiment which has been seen since the vote.”
According to Tim Moore, Senior Economist at HIS Markit, the housing market across the UK as a whole is being underpinned by lack of supply and ultra-low mortgage rates. These unchanging fundamentals make the UK property market an attractive investment in the long-term.
“The key message from October’s survey data is that UK housing market sentiment has recovered strongly this autumn from the post-referendum jitters seen during the summer.”