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.
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.