Reports from Knight Frank have shown that the outlook for house prices remains positive for fourth consecutive month, with seven regions expecting price increases over next 12 months.
Knight Frank’s House Price Sentiment Index has indicated that average prices fell again in May. 17% of households reported a decline in home values, while 9.5% signalled that the value of their property rose. At 46.3, the resulting HPSI figure is up from April’s reading of 45.4 and just under March’s 20-month high of 46.6.
Any figure under 50 indicates that prices are falling, and the lower the figure, the steeper the decline. Anything over 50 suggests that the prices are rising.
Households in all but one region signalled that the value of their property had fallen in May – as has been the case for the past three months. The survey of 1,500 households across the UK showed that sentiment was weakest in the North West (41.0) and West Midlands (42.5), indicating accelerated price falls.
London bucked the trend again, but at a much slower pace than in April – down from 53.6 to 50.9.