British homeowners think they’re sitting on a good investment as Brexit effect recedes
UK homeowners are the most positive on the value of their biggest asset since before the EU referendum, according to a survey.
An index of perceived current value of house prices rose to 57.5, according to research by Knight Frank and IHS Markit, its highest point since the Brexit vote led homeowners to think prices would actually fall. A reading below 50 indicates people think prices have fallen.
British homeowners are even more bullish about prospects for future prices, with a reading of 67.5.
Read more: It looks like UK house price growth is getting its mojo back
London homeowners were the most confident in an increase in the value of their home, with Welsh owners by far the most pessimistic in mainland Britain.
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However, London was only the third most optimistic when it came to prices in a year’s time, with households in the South East and East of England leading the rest of the country.
The post-Brexit dip was the first time since early 2013 that Britons thought the value of their houses had actually declined.
Since then one measure of average house prices in England and Wales has broken through £300,000 for the first time, while the government’s official statistics showed average prices at £220,000 in December, an increase of 7.2 per cent during the month.
Read more: All 33 London boroughs ranked in order of house price growth
Tim Moore, senior economist at IHS Markit, said: “UK households are gaining confidence about the outlook for their property values over the course of 2017, driven by the improved economic backdrop, resilient labour market conditions and a continued boost from ultra-low mortgage rates.”
He added: “Brexit-related anxieties appear to have receded among buyers, but there remains a sizeable list of factors likely to keep a brake on price momentum during the year ahead.”