Increasing number of households believe the value of their home is still rising

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The number of households perceiving that the value of their home had increased improved during June, with respondents in 10 of the 11 regions believing their property price had risen

It marks a turnaround of three successive months of falling, although still positive, sentiment.

Some 17% of the 1,500 households surveyed by Knight Frank across the UK said that the value of their home had risen over the past month, while 8.9% said that prices had fallen. This resulted in a House Price Sentiment Index reading of 54.1.

The reading is still well below the previous peak of 63.2 in May 2014, but any score above 50 is seen as positive.

Only the north-west was negative, with a score of 47.7.

The future HPSI, which measures what households think will happen to the value of their property over the next year, rose slightly to 62.0 in July’s survey, up from 61.3 in June.

But there were regional variations, with a score of 68.7 in London and 56.7 in Yorkshire & Humberside.

Oliver Knight, an associate in Knight Frank’s residential research team, said: “While UK house price sentiment ticked up slightly in July, it remains subdued in comparison to longer term trends. Households still report that values are increasing, but at a more modest pace than before the EU referendum, which remains consistent with wider housing market indicators.”

Tim Moore, senior economist at IHS Markit, said: “UK households continue to anticipate property price gains over the coming 12 months, especially those living in London and the south-east.

“The latest survey signals a rebound in confidence for the first time in three months, but looking at the overall picture reveals that house price sentiment has shifted down a gear this summer.”

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