Optimism in property market slows down -Clydesdale

According to the Glasgow-based lender, just less than half (49 per cent) believe their home will increase in value over the next year compared to 54 per cent in January and 55 per cent a year ago. A further 49 per cent anticipate that the value will stay the same whilst 2 per cent believe it will decrease.

Steve Fletcher, director of retail banking at Clydesdale, said: “It has been positive to see confidence returning to the property market however our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year.

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“There are still a number of property hot spots, such as London and the South East, where property prices are rising and we anticipate that this will continue however this is not mirrored across the UK as a whole.”

Changes in value of property over the next 12 months:

June 2015

January 2015

June 2014

Increase

49%

54%

55%

Stay the Same

49%

44%

42%

Decrease

2%

2%

3%

The survey revealed that Londoners are the most optimistic with 73 per cent anticipating an increase in the value of their home, followed by 62 per cent of those in the South East and 56 per cent of those in the East.

In sharp contrast 11 per cent of those surveyed in the North East expect the value of their home to decrease, a view shared by 6 per cent in the North West and Scotland.

Regional breakdown re changes in value of property over the next 12 months:

Region

Increase

Stay the Same

Decrease

London

73%

25%

2%

South East

62%

38%

n/a

East

56%

41%

3%

South West

50%

48%

2%

UK average

49%

49%

2%

Midlands

43%

56%

1%

Scotland

43%

51%

6%

North East

42%

47%

11%

Yorkshire

41%

58%

1%

Wales

36%

62%

2%

North West

32%

62%

6%

 

Clydesdale found that the key factor for those who think their home will increase in price, is rising property prices as well as the positive impact of the economic recovery.

While those living in the South East and London are the most upbeat about rising property prices, with 67 per cent in the South East and 64 per cent in London citing this as the main reason for anticipating an increase in the value of their home. In contrast only 37 per cent of those in the North West share this view.