Households across UK optimistic, says survey
January’s reading was the sixth consecutive month that the index has been in positive territory following the post-referendum low in July.
Some 17% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 5.3% said that prices had fallen. This resulted in a HPSI reading of 55.8.
Any figure over 50 indicates that prices are rising, and the higher the figure, the stronger the increase. Any figure below 50 indicates that prices are falling.
January’s reading was a slight fall compared with the 56.1 recorded in December, although it remains notably above its post-referendum low of 48.3 in July.
Household sentiment appears to have settled since the vote, with an average index reading on a slightly longer threemonth rolling basis of 55.8. However, there remain fairly large regional variations.
Households in 10 of the 11 of the regions covered by the index perceived that the value of their property rose in January. Households in London (60.1) and the South East (59.8) reported the biggest rise over the course of the month.
They were followed by those in the East of England (58.9) and the South West (57.3). Households in Scotland reported a slight fall in prices over the course of the month (49.9).
The future HPSI, which measures what households think will happen to the value of their property over the next year, rose in January to 65.5, up from 62.3 in December.
This was the highest reading achieved by the index since before the UK’s referendum on EU membership, although it remains firmly below its peak of 75.1 achieved in May 2014.
Whilst the headline index rose month-on-month, there remain quite large regional variations in terms of household expectations, with Londoners (71.2) the most confident that prices will continue to rise followed by those in the South East (71.0), mirroring the current HPSI. ■