The confidence among respondents helped the sentiment index to reach 63.2; it’s highest ever reading since the index began in 2009, with the last previous high of 62.7 recorded in April 2014 outlining continuous high growth.
This is indicative of an improving investor sentiment regarding the UK market. This change is a result of significant uplifts in UK house prices, which have grown by 8.5% in the last 12 months to March to reach a typical price of £263,000, according to the Office for National Statistics (ONS).
This resurgence has most significantly affected housing in the North of the country, with Nationwide reporting that prices in Manchester accelerated faster than London in the first quarter of 2014 in their latest house price index.
Households in all of the 11 regions covered by the Knight Frank index perceived that prices rose over the last month, with those in London and the South West reporting the highest perceived house price rises.
Another record broken in this month’s index was the expectations for future price growths. This category of the index asks households what they think will happen to the value of their property over the next year. The index recorded a new high of 75.1 in this respect, marginally outscoring last month’s record of 75.0.
More than half of respondents said they expected the value of their home to rise over the next year, with just 5.7% anticipating a decline.
Similarly, households in all 11 regions stated that they expect the value of their home to rise, with the East of England (79.7) and South West (79.3) perceiving the biggest hikes in house prices.
Over-55s, the age-range most likely to own their house outright, expressed the most confidence about house price rises (80.1), while younger mortgage borrowers were slightly less confident (79.4), yet still largely expected prices to rise.
Another criterion the index examines is the likelihood of UK households buying within the next year or upcoming five years.
In this criterion, the House Price Sentiment Index discovered that some 6.5% of households plan to buy a property in the next year, jumping from 5.1% in April.
A further 21.6% of households say they plan to purchase a property within the next five years, while 25.7% plan to buy a house or apartment in more than five years’ time.
Only 18% of households declared they have no plans to acquire a property at this stage, while 28% of households remain undecided on whether they will buy in the future.
To read the complete Knight Frank and Markit report click here.