Confidence in house prices continuing to rise has dropped in the last six months, according to a new Zoopla survey – and those in London are least optimistic.
Seventy per cent of homeowners surveyed still believe property prices in their area will increase over the next six months.
However, this figure is down from 87 per cent who shared the same sentiment when a similar survey was carried out in April by the online property portal.
Jitters? The majority of homeowners still believe property prices will increase in the coming months – but it has fallen compared to earlier in the year
Homeowners in the East Midlands and Scotland are the most confident about seeing a rise in their property price, with 79 per cent expecting an increase, the Zoopla housing market sentiment survey found.
But in the capital, only 62 per cent forecast a rise.
It comes after Office for National Statistics figures earlier in the week revealed that prices in the last 12 months have risen far more slowly in London compared to other regions.
Other regions that are not as confident are those in the North East, and Yorkshire and the Humber, where 65 per cent and 67 per cent expected increases respectively.
The research also showed the anticipated rate of growth has declined, with homeowners predicting value rises of 4.9 per cent on average over the coming six months, compared with 7.8 per cent when the question was asked in April.
Lawrence Hall, spokesman for Zoopla, said: ‘Despite a dip in sentiment, the majority of homeowners are confident in house price growth in their area, albeit at a slower rate than previously experienced.
Percentage of home owners who expect their property prices to rise in next six months
East Midlands, 79%
South West England, 75%
West Midlands, 73%
East of England, 72%
North West England, 72%
South East England, 68%
Yorkshire and the Humber, 67%
North East England, 65%
‘This period of uncertainty could be good news and an opportune moment for first-time buyers who are hoping to get a foot on the property ladder.’
The survey also found that obtaining a mortgage approval is now seen as more difficult than it was earlier this year.
Nearly a third of homeowners believe it is now harder to get approval for a mortgage than it was six months ago – up from 29 per cent in April, the survey of more than 1,700 home owners found.
Yesterday, official figures showed a total of 217,350 new homes were added to the stock in England last year, as Prime Minister Theresa May promised to take personal charge of the Government’s response to the housing crisis.
The figure for 2016/17 was 27,700 up on the previous year and the highest since the financial crash of 2007/08.
The average property price increased 5.4 per cent in the year to September 2017, according to the ONS.
It means the typical home in Britain is now worth £226,000, some £11,000 higher than a year earlier, defying some expert predictions of prices reversing after years of strong growth.
Annual house price inflation is up from the 4.8 per cent recorded a month earlier by the ONS in its monthly index.
The annual growth rate has slowed since mid-2016 but has remained broadly around five per cent during 2017, in the face of Brexit talks – and despite worries over consumer lending and the wider economy.