Just 5.9% of households expect to buy a property over the next 12 months, while a further 6.4% said they would purchase a home within one to two years, according to Knight Frank and Markit’s latest House Price Sentiment Index.
The monthly survey also found that households in all UK regions perceive that property prices have increased this month.
The highest perceived rate of house price growth in September was recorded in London, followed by the East of England.
Looking ahead, households in all UK regions expect house prices to increase further over the next 12 months – the highest perceived rates of growth were recorded in East and South East England.
“UK price sentiment remains in positive territory, and has stayed broadly stable since the election in May. However the north-south divide is evident, with the average reading for the north of England in September at 54.9 and the south of England at 64.1. This is the second widest gap between the two readings this year,” says Grainne Gilmore, Head of UK Residential Research at Knight Frank.
“Overall, households expect prices to rise over the next 12 months, with eight times as many households anticipating a rise in the value of their home as anticipating a decline. Sentiment is being underpinned by the improving economy, with positive employment data as well as wage growth boosting buyer confidence,” she adds.
“At the same time a shortage of stock on the market is serving, in some cases, to put upward pressure on prices. Again the north-south divide is in evident in the outlook for prices, with the average future house price index for the south of England at 76.0, compared to 63.9 for the north.”
Richard Bush, Co-Founder of CrowdLords, comments: “Of course confidence is high among homeowners or existing investors not looking to expand their portfolios, but what about everyone else? Increasing property prices is obviously good for the economy, but it does cause affordability issues compounded by the current bank lending criteria.”
“Perhaps this is the time for Parents and Grand Parents to take steps to help their “generation rent” children have at least some investment in property.”
