The mood in the property market in London going through the roof

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Owners of houses and apartments in London are more confident that the value of their apartments or houses will grow in the next 12 months, these are the latest polls conducted by the largest real estate Agency KNIGHT FRANK/Markit , which forms the index of the House Price Sentiment Index (HPSI) – the so-called Index of Housing Prices

The index also showed the majority of owners of residential property in the UK that the value of their home rose over the last four weeks, it happened for the second time since June 2010.

Growth in optimism about future real estate prices followed immediately after the statements of the UK government that it intends to pour a few billion into the mortgage market in the UK to implement the program “Help to Buy”, and assuming, thereby, to strengthen market confidence in UK property.

Overall sentiment about the market of real estate of great Britain is positive for the first time since the summer of 2010, but the picture in the context of the regions is mixed. For example, the owners of residential property in London are absolutely convinced that prices will rise, and the people of Wales are only very modest growth in the value of their homes. Growth expectations were highest among men from 24 to 34 years old – the typical age for buyers who first buy a house. However, the majority of people in the over 55 years of age is also in the belief that the value of their home will rise over the next year.

Although there are regional differences in perspectives, attitudes, respondents in all regions expect price increases in the next 12 months. The expectations of Londoners in General have soared since the index HPSI and 70.8 in April to index HPSI – to 76.3 in may. This is the highest index in history. Optimistic Londoners, perhaps based more on the fact that residential property prices in London rose by 9 per cent over the last year .

In Wales, by contrast, observed the greatest decrease in confidence. In April it was 63,3 , and in may dropped to 52.6.

Optimistic about the market impact of the UK property programme “Help to Buy” has been particularly strong, especially among buyers who want to buy their own homes.

The recent expansion of the schemes of mortgage lending, supported by the government, will increase loans to the population and will create a jump in lending in the months ahead.

Thus, the improvement in the mortgage lending market in UK property and enabling the flow of economic news has created conditions, which could neutralize the weak data coming from the labour markets and formed the basis for lifting the mood of people in the UK.

® Alice Morgan 19.05.2013