8th November 2013
Men are outpacing women in the confidence stakes when it comes to the potential future value of their home says new research from Clydesdale and Yorkshire Banks writes Philip Scott.
The research found that more than half of men, at 54%, believe their property will increase in value over the next 12 months compared to 42% of women.
But overall confidence is on the rise across the property market. The survey concluded that almost half, at 48%, of those surveyed as part of the Housebuyers Research believe that the value of their home will increase over the next 12 months, a marked increase from just 25% six months ago and a mere 18% in April 2012.
Andrew Pearce, retail director for Clydesdale and Yorkshire Banks, says: “It is encouraging to see optimism returning to the property market with a significant increase in the number of people who believe the value of their property will increase.”
London continues to be the most optimistic region with 63% predicting an increase in house price. The Scots are the least optimistic where just 35% of those surveyed said they were expecting a price increase during the next year.
The most significant upsurge is in the East where 50% of homeowners now predict an increase in the value of their home while only 14% predicted an increase in April 2013.
The latest numbers from Halifax show that house prices rose 1% month-on-month in October, following an increases of 0.9% month-on-month in September, 0.7% in August and 1.0% month-on-month in July. Consequently house prices were up by 2.5% in the three months to October compared to the three months to July. The year-on-year increase in house prices climbed to 5.8% in October from 5.% in September and 3.5% in August – the strongest annual rise since July 2010.
Dr Howard Archer chief UK and European Economist at IHS Insight, commenting on UK property prices, says: “An improving housing market is supportive to economic activity and growth prospects, while modest house price rises also have some benefits, especially when they are occurring in areas where house prices are still substantially below their peak 2007 levels and a significant number of people are facing negative equity. However, it is vitally important for economic stability and longer-term growth prospects that a new housing price bubble does not emerge.
“While the strength of house price rises in London is becoming an increasing concern and pushing up the overall national increase in house prices, we are currently some way off from an overall housing market bubble emerging. Indeed, in many areas house prices are still well below their 2007 peak levels and rising only modestly at the moment.”