future looking bright for local housing market

Two important indicators suggest confidence in the housing market is steadily growing, according to Warwickshire and Coventry estate agency Brian Holt.

The June House Price Sentiment Index (HPSI) issued by Knight Frank and financial information service company Markit showed that almost 66 per cent of homeowners expect their property to increase in value over the next 12 months.

Around 15 per cent of the 1,500 homeowners surveyed across the UK also believed the value of their home had risen over the last month, while only 8.6 per cent thought it had fallen. The index was at its highest for two years.

Brian Holt’s Leamington manager Jane Canning said: “Historically the HPSI has been a reliable indicator of house price trends, and the expectations of price increases, no matter how modest, is critical in generating movement in the market and boosting the supply side.”

A report carried out by Royal Institution of Chartered Surveyors (RICS) last month showed UK sales figures for the three months until the end of May at their highest since 2009, reflecting a gradual but steady increase over that time.

Surveyors in all areas across the UK expected prices to rise during the year, which would be good for sellers, but bad news for first-time buyers trying to get onto the ladder.

The survey says this was partly owing to government schemes aimed at stimulating the market.

Jane added: “Nobody is expecting dramatic movements in sales or prices, which in many ways would be counter-productive if we are to see a continued rise in opportunities for first time buyers, but these small but steady steps are giving the housing market recovery some firm foundations.”