You’re reached the Experience Invest blog. Here, we bring you regular updates on the latest British residential and commercial property market news. Recent figures have shown us that UK house price sentiment hit its highest point since 2014 in February this year.
Demand and supply
The Telegraph reports that figures from Halifax bank suggest that average UK house prices hit a 17-month high in the year to January 2016. During this period, average British residential property values increased by 9.7% – the highest rate of annual growth since July 2014, when they rose by over 10%.
Explaining these figures, Halifax housing economist Martin Ellis said: “The imbalance between supply and demand continues to exert significant upward pressure on house prices… This situation looks set to persist over the coming months.” In other words, demand is increasing for a low supply of UK residential properties and the latest House Price Sentiment Index (HPSI) from Knight Frank and Markit Economics, shows that this has lifted UK house price sentiment to an 18-month high.
A recent report shows that 23.2% of the 1,500 British households surveyed for the latest HPSI said they believe that the value of their home increased in the past month. This resulted in a HPSI reading of 59.6 points; any reading above 50 points indicates that UK households think British residential property prices are increasing.
This is the 35th consecutive HPSI that read above 50 points, suggesting that continually rising average UK house prices have fuelled positive sentiment in the country’s property market. Furthermore, the February Index’s reading was the highest since October 2014, indicating that British households perceive that the value of their home has risen to its strongest point in over a year.
Commenting on the release of the February 2016 HPSI, Head of UK Residential Research at Knight Frank Gráinne Gilmore noted: “The HPSI indicates that house prices are set to continue to tick up modestly in the coming months. The market is being underpinned by the solid economic recovery and ultra-low interest rates – which now look as if they will stay put for some time to come.”
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