Optimism on house prices from UK homeowners

Knight Frank/Markit has surveyed 1,500 homeowners in the UK. Their survey revealed that 13.5% of homeowners believe the value of their home has risen in the past month. The Independent reported that this is the highest proportion since June 2010. Homeowners aged between 25 and 35 are the most optimistic about house prices rising. 

Tim Moore, Senior Economist at Markit, said: "At present it seems households are coalescing behind the view that property values are starting to rise after a prolonged period of stagnation. Improving mortgage conditions and a more favourable economic news flow helped underpin the latest climb in sentiment. For the time being at least, better mortgage affordability is acting to offset the underlying drag from weak UK labour market conditions.”

"The recent extension of the Funding for Lending Scheme is expected to boost secured lending to households and generate a pick-up in mortgage approvals over the months ahead."