Market `Beginning To Move In Right Direction`, Says Economist

Date Published 28 December 2012

UK households in six of eleven UK regions expect the value of their home to rise in 2013, despite having believed that house values have fallen for the last 30 consecutive months.

The biggest rises in 2013 are expected in London and the South-West, closely followed by Yorkshire and the Humber.

In contrast, households in Wales expect the biggest fall in the value of their property over the next 12 months

According to Knight Frank/ Markit’s House Price Sentiment Index, only 7.7% of home owners believe the value of their property has gone up over the last month.

Chris Williamson, chief economist at Markit, said: `Households still perceive the current value of their properties to be falling on average, although sentiment over the last two months has been the least negative for two and a half years, suggesting the housing market is at least moving in the right direction.

`Hopefully the Funding for Lending scheme will help to perk the market up further in coming months, meaning 2013 will be a better year for the housing market in terms of both prices and the volume of sales.

`However, the capital still looks likely to remain very much the UK’s housing market hot-spot for the foreseeable future.`