UK not gloomy about house prices, index shows | Europe | News

UK not gloomy about house prices, index shows | Europe | News

There is little sign of gloom among households across the UK, with a house price sentiment index hitting the highest level for more than two years in September.
The latest Knight Frank/Markit House Price Sentiment Index (HPSI) shows that while households perceived that the value of their home fell again in September, the declines were the most modest in more than two years.
Nearly 10% of the 1,500 households questioned said the price of their home had risen, while 15% said that the value of their home had declined. This gave a HPSI reading of 46.8, up from 44.5 in August and the highest reading since July 2010.
Any figure under 50 indicates that prices are falling, and the lower the figure, the steeper the decline. Any figure over 50 indicates that prices are rising.
Since the inception of the HPSI, the index has been a clear lead indicator for house price trends.
Looking ahead around 28% of households anticipate a rise in the value of their home over the next 12 months, compared with 21% expecting a decline. The resulting index reading is 53.2, up from August's reading of 51.8 and marking the highest reading since May this year.
London continues to lead the way, with households in the Capital expecting the biggest price rises over the next year with a reading of 63.1, up from 61.3 in August.