Homeowners confident on house prices
Some 23.7% of the 1,500 households surveyed across the UK said that the value of their home had risen over the last month, while 4.6% reported a fall.
Households in all eleven regions reported that prices rose in May, with two thirds of Londoners reporting the biggest perceived rate of house price growth over the course of the month.
Households are now more confident that the value of their home will rise in the next 12 months than at any time since December last year.
Those in the South East were the most positive about the outlook for house prices followed by households in London and in the East of England.
Some 6.6% of UK households said they planned to buy a property in the next 12 months, up from
6.4% in May.
Individuals aged between 25 and 34 are the most likely to be considering buying a home in the short term, with 9.2% of such respondents saying they planned to purchase a home within the next
12 months, followed by those aged 35 to 44 (9.0%).
Grainne Gilmore, head of uk residential research at Knight Frank, said: “Households’ expectations for house price rises have reached the highest level this year as the results of the general election provide some clarity on the outlook for the housing market and household finances.
“Interest rates remain advantageous, with mortgage rates hitting record lows for those who can clinch a new deal.
“However the future house price index still remains below levels seen last year as constrained mortgage lending and affordability affect the market.”
Chris Williamson, chief economist at Markit, said: “The resumption of political stability is clearly good for the housing market. At the same time, survey data shows that low inflation has meant homeowners have pushed back their expectations of when interest rates will start rising, adding fuel to the bullish view on house prices.
”Notable exceptions are Scotland and Wales, where devolution uncertainty seems to have led to marked falls in views on future prices in June following the election.”
Bethan Jenkins, co-founder of CrowdLords, added: “Stretched affordability and tighter mortgage lending conditions are keeping a lid on house price momentum, and expectations for future growth continue to go through a lull.”