The mood in the property market in the UK

The growth of sentiment in the property market of the United Kingdom

Homeowners in the UK now more than ever believe that the value of their homes will rise over the next 12 months, what happened for the first time in the last three years. These are the data based on so-called Sentiment Index of real Estate Prices – House Price Sentiment Index (HPSI) , which published the leading companies in the field of economic consultations – Knight Frank and Markit

This jump in optimism is associated with the launch of the government programme in the UK called “Help to Buy” – “Help to buy” residential real estate. This government program is a multi-billion infusion of support schemes of mortgage lending, which has two objectives – on the one hand, to give a boost to in the economic crisis, developing the UK construction sector, on the other hand, to provide new buyers more opportunities to buy their own homes in the UK.

 Mortgages in the UK

The index reflects the confidence of property owners in the UK that the value of their property has increased in the last month – it happened for the first time since June 2010.

In addition, the index reflects the growing optimism of owners about the future value of house prices in the UK in all regions, based on the expectation of price growth next year.

Sentiment has grown particularly positive in the last month, but the data of the April market was marked by changes in expectations HPSI – a three-year high.

The government program “Help to Buy” aims to give impetus to the mortgage market in the UK, and this in turn is reflected in increased optimism about housing prices among owners aged 25 to 34 and among those potential buyers who now are customers of the rental market in the UK, but going to be the owners. Thus, HPSI made an excellent indicator of price movements. Since the beginning of 2013, expectations of increasing prices rising every month, which marks the longest uninterrupted period of improving sentiment since the survey began four years ago.

® Angliadom 24.04.2013