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UK house price sentiment rises at slower rate in June

Staff Writer |
British households perceived that the value of their home increased in June, albeit at a slower rate than in the previous month, survey figures from IHS Markit and Knight Frank showed Friday.

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The Knight Frank/Markit House Price Sentiment Index, or HPSI, declined to 53.3 in June.

Any figure over 50 indicates that prices are rising.

However, while it remains in positive territory, the index has been steadily ticking down for the last three months which suggests that the perceived rate of house price growth is slowing.

On a regional basis, households in the South East reported the biggest rise in June, followed by the these in the East of England and London.

The future HPSI, a measure of expectations on house prices dropped to 61.3 in June from 64.5 in May.

This indicates that UK households are also less confident that property prices will rise over the next few months

"The loss of momentum reflects heightened political uncertainty, a renewed squeeze on cash available to spend and entrenched concerns about the general economic outlook," Tim Moore, senior economist at IHS Markit, said.

"As a result, fragile sentiment among buyers appears set to limit the influence of ultra-low mortgage rates and stretched housing supply on near-term price dynamics."

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