Confidence in the property market has tripled across Yorkshire, according to research from Clydesdale Bank and Yorkshire Bank published today.
The Banks’ research shows that homeowners in Yorkshire are now over three times more likely to believe house prices will rise in the year ahead, with almost two-thirds now confident prices will rise. This time last year, just 1 in 6 Yorkshire homeowners were of the view that the value of their home would increase in the next 12 months.
Across the regions, the picture is of increasing belief in the market across all areas with confidence almost doubling or better in each. While London (80%) and the South East (70%) remain the areas most confident in an increase in property prices, all other areas have an increasingly positive view of house prices.
|Region||2014 - % who think value of home will increase||2013 - % who think value of home will increase||Change in Confidence|
|South East||70%||30%||+ 40|
|South West||58%||30%||+ 28|
|UK average||55%||25%||+ 30|
|North East||44%||19%||+ 25|
|North West||42%||17%||+ 25|
In 2013, homeowners in the East of England were least confident, with fewer than 1 in 7 homeowners expecting to see the price of their home rise in the year ahead. Confidence has grown most rapidly here, homeowners are now more than four and a half times as optimistic compared to last year; meaning two thirds believe the value of their home will rise in the next 12 months.
The Midlands, South West and London, where confidence was already relatively high, all saw growing confidence but slightly below the rate seen nationally.
According to the research, there has been a large shift away from the feeling that the housing market had stalled and prices would remain flat. In 2013 two thirds (66%) or homeowners interviewed believed house prices would be unchanged, but this figure has now fallen to just 42%, and now the majority believe prices are on the up.
UK House Price Expectations:
|Increase in value of home||55%||25%||+30|
|Value will stay the same||42%||66%||-24|
|Decrease in value of home||2%||9%||-7|
The results come on the back of a growing number of economic indicators that show an increasing confidence in the UK economy as a whole. Figures from HM Treasury (*see Notes to Editors) show that the number of housing transactions is now at its highest since 2008, consumer confidence is recovering and confidence among businesses is increasing too.
Andrew Pearce, Retail Director for Clydesdale and Yorkshire Banks, said: “While some differences remain around the country, it is encouraging to see confidence returning to the property market so widely and so clearly. Without exception, there has been a strong rebound in confidence in the housing market in the last year across the regions.
“We are seeing this positive attitude reflected in the growing demand for mortgages, our own and in the wider market, and the overall level of housing transactions. Recovery is still in its early stages, and there must be care to balance the demand for mortgages so as not to see a repeat of past issues, but the wider economic measures are also pointing in the right direction for a sustained and sustainable period of growth.”