2nd July 2015
The renewed optimism across the UK’s property market appears to be fading with fewer homeowners anticipating an increase in the value of their home over the coming year, claims new research.
The survey from Clydesdale and Yorkshire Banks found that less than half of its respondents, at 49% believe their home will increase in value over the next 12 months compared to 54% in January and 55% a year ago.
In addition, a further 49% anticipate that the value will stay the same whilst 2% believe it will decrease.
Notably the latest statistics from Nationwide show that house prices dipped 0.2% in June causing year-on-year gain to slow sharply to a two-year low of 3.3%.
Steve Fletcher, director, retail banking, said: “It has been positive to see confidence returning to the property market however our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year.
“There are still a number of property hot spots, such as London and the South East, where property prices are rising and we anticipate that this will continue however this is not mirrored across the UK as a whole.”
Changes in value of property over the next 12 months:
|June 2015||January 2015||June 2014|
|Stay the Same||49%||44%||42%|
The survey also revealed that Londoners are the most optimistic with 73% anticipating an increase in the value of their home, followed by 62% of those in the South East and 56% of those in the East.
In sharp contrast 11% of those surveyed in the North East expect the value of their home to decrease, a view shared by 6% in the North West and Scotland.
Regional breakdown re changes in value of property over the next 12 months:
|Region||Increase||Stay the Same||Decrease|
Those living in the South East and London are the most upbeat about rising property prices with 67% in the South East and 64% in London citing this as the main reason for anticipating an increase in the value of their home. In contrast only 37% of those in the North West share this view.