Housing Market Confidence Grows In UK

In the recent house price index, it showed that the household owners in the United Kingdom continue to believe that the value of their homes will continue to rise as promising as the first six months in the year. The real property sector has continued to bloom contrary to several indicators that it will slow down. Houses equipped with the latest trendy interior designs, living room fixture and furniture as well as the best bathroom wash basins, are what home buyers are eyeing for.

Out of the 1,500 households that were surveyed across the United Kingdom, 23.7 percent homeowners said that the value of their property had risen in the past month. Only 4.6 percent reported that their house value had fallen. This was according to the index that was reported by Knight Frank and Markit Economics, a real estate firm.

Because of the strong belief of the correspondents of an improved value in their property, the resulting HPSI read 59.5. This month has been the twenty seventh consecutive months wherein the reading was above 50. The reading this month was an increase of last month’s reading which stands at 58. It is likewise the highest index reading since last October 2014. The result indicates that the households have already dismissed the uncertainties that the General election has caused.

There is another HPSI that measures what the household owners think will be the value of their properties in the future. This is called the future HPSI. The research indicated that it rose to 70.5 in June and is up by .5 since last month. The index report also unveiled that household owners are getting more confident that the value of their properties will rise consistently within the next 12 months.

The head of the residential research in the United Kingdom said in a statement that the expectations in the rise of household prices have achieved the highest level within the year. This is driven by the results during the General Election as it provided clarity on the people’s outlook for the household finances as well as the housing market.

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