Households expecting property prices to rise
Sentiment plays an important role in determining decisions about whether to buy or sell a home.
1 minute to read
Household expectations for future house prices bounced back into positive territory in August after four months of negative expectations, according to a survey conducted by IHS Markit, the global information and economics provider.
The firm’s monthly House Price Sentiment Index for future house prices climbed to 51.1, up from a low of 41.1 in May 2020. Any figure over 50 indicates that households expect prices will rise in the coming 12 months.
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Household sentiment plays an important role when it comes to the housing market – not least in determining decisions about whether to buy or sell a home, whether to upsize, downsize or just move to a different area.
The bounce back reflects the unexpectedly rapid recovery in housing market activity since the easing of lockdown restrictions, partly as a result of pent-up demand being released into the market, but also behavioural shifts, as people reassess their housing needs and preferences as a result of life in lockdown.
In London, Knight Frank data showed that the number of new prospective buyers registering in the capital in the week ending 8 August was the sixth highest figure in more than 20 years.
As, my colleague Tom Bill explored earlier this week one well-documented feature of the Covid-19 pandemic has been an increase in the number of people assessing where they live more closely.