London homeowners less confident of further price rises than in many other English regions

29th July 2014

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Some 92% of homeowners expecting house prices to grow over the next six months according to the Zoopla Housing Market Sentiment survey.

Of the 7,810 homeowners predict average property price growth of 7.6% by the end of the year.

Yet 40% of homeowners say getting a mortgage is now harder than 3 months ago and are concerned about mortgage availability as a result of new lending criteria following the Mortgage Market Review.

The 92% of homeowners expecting UK property prices to increase over the next six months is slightly down from a four year high of 95% earlier this year.

The Mortgage Market Review (MMR) and associated new lending rules have both slowed down the mortgage application process and made securing finance more difficult – with 40% of those surveyed saying that securing a mortgage is now harder than it was three months ago.

For the first time in a long time, London homeowners are not the most confident across the country about house price rises in their area.

The South East, the South West, the East of England and the West Midlands have all overtaken the capital in terms of homeowner confidence. With London prices having moved up so far and fast, the proportion of homeowners in the capital who expect prices to rise over the next six months has fallen from 98% to 92% over the last three months.

Lawrence Hall of Zoopla.co.uk says: “After months of consistent growth in the capital’s property market we are now seeing a slight increase in caution among London’s homeowners. More broadly, securing a mortgage appears to be getting harder now that MMR has caused lenders to be more rigorous with their lending criteria and approval process.”

PROPORTION OF HOMEOWNERS EXPECTING PRICES TO RISE BY DECEMBER

Region Rise (%) Flat (%) Fall (%)
South West England 95% 4% 2%
South East England 95% 2% 2%
East of England 93% 6% 4%
West Midlands 93% 5% 3%
Wales 92% 5% 4%
London 92% 3% 5%
Yorkshire and The Humber 91% 6% 4%
North West England 90% 7% 3%
East Midlands 90% 6% 4%
Scotland 90% 6% 4%
North East England 87% 8% 5%

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