Households across the UK have perceived a rise of value of their home in September, the House Price Sentiment Index (HPSI) by Knight Frank and IHS Markit confirmed.
In their monthly HPSI, Knight Frank and IHS Markit have revealed that homeowners across the UK have, for the second month in a row, experienced a rise in value of their property.
The index counts as one of the main indicators in the property industry for house price trends. Over recent time, this research has established itself as a forecaster of mainstream house prices indices.
In September, some 20.8% of the 1,500 households surveyed stated a rise in value of their property over the last month, whilst only 6.9% said prices have dropped. This result led to an overall HPSI reading of 56.9.
Knight Frank explained that any figure of 50 or higher indicates that prices are rising; the higher the figure, the stronger the increase. Figures below 50 indicate a drop in house prices.
This month’s reading was a steep increase from August’s 51.4 and is also the largest month-on-month increase in seven years. However, the increase still remains below the average of this year’s first six months, pre referendum.
Gráinne Gilmore, head of UK residential research at Knight Frank, said:
House price sentiment is mirroring the broader pick-up in confidence after Brexit. This comes as initial data shows a continuing positive picture for both employment and economic output.”
“The housing market is now entering the typically busier autumn season, with indications that activity is rising, especially in key urban areas.”
“There is still uncertainty surrounding the next steps of how the UK will move to exit the European Union, and this could create some economic turbulence. Yet the fundamentals of the housing market remain unchanged, underpinned by limited supply and ultra-low mortgage rates.”
