Demand for Property Rises But Homeowners Less Optimistic

Two new surveys have recently been released that show how the housing market is currently performing. One highlights that demand for properties has risen by 9% in a quarter, with the other showing that homeowners are less optimistic about property prices increasing than they were at the start of the year.

Demand Increases

Information released by eMoov, the online estate agency, shows that over the past three months there has been a rise of 9% in demand for properties across the UK. Some of the areas that have seen the highest levels of growth are in the counties surrounding London, as well as the North and Bristol.

This rise in demand highlights that buyers have grown more confident about the housing market since the election. There is now more stability in the country, and buyers are looking to make their next move. This could be first-time buyers looking for starter homes, as well as those looking to move up to the ladder such as to a home with a wrought iron balcony railing.

Optimism About Price Growth Falls

Buyers may be growing in confidence, but property owners appear less optimistic that their home will rise in value over the course of the next year. The research, released by Clydesdale and Yorkshire Banks shows that less than half (49%) of UK property owners think that the value of their home will rise in the coming year. This figure compares with 55% at the same time last year and 54% at the start of 2015.

49% of owners thank that the price will remain stable, with the last 2% anticipating a decline. Those who believe their property will rise in value put this down to a general increase in the property market and a growth in positivity surrounding the economy.

Levels of optimism vary across the country, with those in London, the South East and East the most optimistic. Property owners who live in the North East, North West and Scotland were most likely to believe there would be a fall in the value of their home this year.

Even though these two pieces of research show different sides of the property market, they still indicate that the sector as a whole has improved since the end of the recession. As the market levels off following a widespread increase as the economy recovered, we will still see property hotspots but this won't be a country-wide trend.