Big house price rises are on their way, insist confident home owners

Hefty price rises are predicted for the property market over the coming months.

A home moving comparison website has forecast that house prices will rise an extraordinary 9% between now and August, while Zoopla says that home owners believe prices will rise almost 5% in the next six months – despite evidence to the contrary.

Zoopla surveyed just over 2,000 of its registered users to give their opinions on house prices.

Eight out of ten expect property values to rise in their area, with the most confident areas in the north – where 91% predict increases.

Even in the least confident area, London, 67% forecast rises.

The optimism is despite slowing price growth, with annual house price inflation dropping to 1.7% across major cities in the 12 months to April.

In London house prices have actually dropped by 0.5% over the year.

Laura Howard, spokesperson for Zoopla, said: “Despite evidence of a slowing housing market and ongoing political uncertainty, home owners remain optimistic about the future of property prices.

“Consumer sentiment plays a crucial role in the health of the housing market.”

However, she added: “Vendors fuelled with optimism for house price growth will need to listen carefully to the advice of their estate agents. Consumer positivity must be channelled to ensure that pricing is correct from the outset.”

Meanwhile, the yet more optimistic house moving website, Reallymoving, is forecasting a 9% rise in an even shorter timeframe.

Reallymoving, which has just released its inaugural house price forecast, says that it is able to provide an accurate forecast three months ahead of completions.

CEO Rob Houghton said: “Prices agreed this spring will show in Land Registry data in the summer.

“However, our customers registering for home move services as soon as their deal is agreed are giving us unique insight into what lies ahead for the housing market.

“Our forecasts suggest that sellers are growing tired of the ‘wait and see’ approach and once the Brexit deadline passed at the end of March, with no further clarification, sellers decided to press ahead with their move.

“This new buyer demand and a continued shortage of quality housing stock is on course to drive strong price growth between May and August, with particular surges in regions benefiting from strong demand such as the north-east and the south-west, where affordability remains attractive and wages are rising.

“Annually, average UK prices have been falling since the start of the year, but in June we can expect prices to see a return to positive growth with a rise of +1% year on year, followed by 0% change in July.

“This suggests that a strong market performance over the spring will see prices make up the value lost in the first part of this year and are set to recover to 2018 levels this summer.

“There is considerable pent up demand in the market following three years of uncertainty and with many doubting that Brexit will be resolved any time soon, people are increasingly making the decision to move on regardless.”

Separately, referencing firm HomeLet reports that new rents last month rose 1.6% on May last year, to an average of £934 per month. Rents outside London are up 1.7%, and within London up 1%.

In London, the average rent is now £1,602, and outside London £776. Rents have risen in every region apart from Yorkshire & Humberside and the north-east.

x

Email the story to a friend

15 Comments

  1. nextchapter

    There’s more stock than there was 3 years ago, and all this fake optimism amongst sellers is a terrible thing.  It just means more houses coming onto the market with optimistic sellers thinking prices are going up vs buyers who actually think prices are going down.  It’ll just leave a stale mate market where you’ll have to spend months convincing the client that they need a price reduction, because that’s what the market is telling us, whilst the competition continues to door knock unsold stock, promising the client that they are the ones that will get them sold for their magical price.   This is what’s ACTUALLY happening.   I’m refusing to take properties on the market now where the client does not want to listen to our expert advice on price and our strategies on how we will get them sold.

    Report
    1. gardenflat

      Agreed. I took my foot off the sales pedal a while ago.

      I think it’s important as a sales and lettings business to explore new income opportunities.

      Report
      1. Bless You

        We have a lot of sneaky cocky brexit leavers, now selling to try and cash in before they either lose their jobs and pensions.

        To late. Market has cooled by 9% not risen.

        Report
        1. natural_selection

          I remember the good old days before the Brexit referendum, we had to blame the weather for market fluctuations.

          Report
  2. James Wilson

    So based on this EAs are in for a lean 12 months.  Dilusional sellers = thin volumes!

    Report
    1. JMK

      = no reduction in the sales price.

      Btw, the word is spelt ‘delusional’.

      Report
  3. GPL

     

    ……and according to the Ministry of Housing Fun?

     

    ”they go up tiddly up up,

    they go down tiddly down down“

     

     

    Report
  4. Jonathan.Welford

    Translation : vendors will have a hefty expectation that their property is worth more than the market says it is.

    The market will be flooded with disposed of landlord portfolios. Supply and demand will dictate the price, as well as affordability for the potential buyers.

    Report
  5. TDGC

    And as always, it’ll be the estate agents fault for the sellers property not selling, even though they would have provided all the evidence and support to confirm market pricing, but sellers no best…… apparently.

    Report
  6. smile please

    Ahhh that explains the agent down the road topping every instruction by 10% now I just need to work out why he drops his pants on fee?

     

    Overpriced unsaleable stock, with a low fee should you sell it …….. think we know where his firm is ending up.

    Report
  7. spin2009

    There’s always an outbreak of “Best House In The Street Syndrome” at this time of year.

    Recommend patient takes 20 mg of “Realisticom” daily to avoid the awful side effects of an hourly dose of ”Reductioneron” when matters start to deteriorate.

    Dr Spin

    Head of Research

    Institute For The Terminally Unsold

    Stamp Duty House

    LONDON WTF1

     

    Report
    1. AgentQ73

      Quite often goes hand in hand with the builderbuiltitforhimselfitis

      Report
      1. Retiredandrelaxed

        Busy chaps, builders – they can only have lived in each “house that they built for themselves” for a few days, given the number of houses where this is the case.
         
        I used to find that an awful lot of people had the “second biggest garden on the estate”

        Report
  8. SLF

    Buyers think prices will go down so are holding tight or looking for a bargain. Sellers need educating. Most have a very overinflated expectation of house much their home is worth. A big problem is that many agents, particularly the corporates are all about listing targets. Get it on at all costs and worry about the price later. These agents need to realise its all about price, quality and demand. It’s not about volume, listing overpriced toot that you’ll never sell and keeping your area manager happy.

    Report
  9. WiltsAgent

    I am walking away from any take on where the seller has their head in the clouds. Prices are off 10% in my patch and the market for flats is flooded. No point in spending my money on an instruction that has no chance of generating a fee.

    Report
X

You must be logged in to report this comment!

Leave a reply

Thank you for signing up to our newsletter, we have sent you an email asking you to confirm your subscription. Additionally if you would like to create a free EYE account which allows you to comment on news stories and manage your email subscriptions please enter a password below.