Date Published 11 March 2011
People have a positive outlook on house prices over the medium and long term, but are not so upbeat for the next 12 months.That is the finding of the latest London School of Economics survey of House Price Expectations.
The survey, which gauged people’s feelings on the UK housing market over the next 12 months, five years and ten years, was sent to current and prospective customers, most of whom are interested in property within London.
Respondents were asked to think about a hypothetical house in London worth £200,000 and to give their view on whether values will go up or down over 12 months, five years and ten years, ignoring inflation.
Some 43% of respondents were ‘certain’ house prices will rise over the next ten years, 26% were ‘certain’ they will go up over the next five years, but only 8% were ‘certain’ they will rise over the next 12 months.
People currently renting had a more pessimistic view on house price increases than owner occupiers. Renters see house prices decreasing by 1% over the next 12 months while home owners perceive a rise of 3%. Tenants think prices will rise by 11% in five years, against 18% from owner occupiers. In ten years’ time, tenants believe prices will have gone up by 26%, while owner occupiers think values will have gone up by 37%
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