Homeowners predict increase in property value

Hammersmith housesAccording to a new survey by the BSA’s Property Tracker, homeowners across the UK expect the value of their house to increase over the course of 2012.

Property owners in London and the south east are the most confident that their home will go up in value, with 53% forecasting that property prices will increase and only 14% predicting that they will fall.

The survey, which takes in the views of over 2,000 consumers every three months, found that homeowners in Wales are the least optimistic on price with a fairly even split between those who think the value of their property will increase (30%), those who believe it will fall (29%) and those who think there will be no change (22%).

Paul Broadhead, Head of Mortgage Policy at the BSA explains why these figures are promising: “The majority of home purchases are made because a consumer wants rather than needs to move house. This means that consumer sentiment is a useful leading indicator of future sales activity in the housing market.

“Positive indicators such as price change or an expectation of price change can stimulate activity, although, inevitably, it isn’t good news for all.”

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