Some 84% of British homeowners expect property prices in their area to rise over the next six months, up 14% from November 2017, according to Zoopla.
Its ‘Housing Market Sentiment’ survey found that property prices are expected to rise by 6.9% in the respondents' areas over the same period, up from 4.9% in November 2017 - the largest increase in consumer confidence since the first half of 2016.
Regionally, the East Midlands and the East of England saw the most optimism among homeowners, with 93% and 90% of respondents respectively anticipating house price rises over the next six months. The South West was the third most hopeful region, with 89% of homeowners expecting an increase in their area’s property values.
In contrast, the North East of England dulled in confidence, with only 63% of respondents expecting an increase – however, this figure is still up 22% since November 2017. London (76%) and the Yorkshire and Humber (84%) were the second and third least confident regions.
The rate at which homeowners think local house prices will increase in value in their areas also rose across the regions. Those in the West Midlands predicted properties in their area to rise in value by 10.6% over the next six months, compared to just 5.4% in November 2017.
The East Midlands was close behind, with homeowners expecting properties to grow in value by 9.2%, up from 4.1% in November. This was followed by Scotland with a property value rise expectancy of 8.6%, up from 1.7% in November. Those in the North East of England anticipate a minor increase of 2.6%.
Despite a boost in confidence overall, 64% of homeowners are still not planning to spend more on home improvements in the next six months, compared to 43% who plan to make some changes. Over the same period, 6.7% of homeowners plan to refinance a mortgage – a 2.3% drop from November 2017.
“It’s encouraging to see a bounce-back in consumer confidence in the market,” said Lawrence Hall, director of communications at Zoopla. “This shows that homeowners are starting to regain their confidence in the property market, with those in the East of the UK having the most optimism.”