The average growth predicted by all consumers surveyed by Your Move is for house prices to rise by 2.8% in the next year. This is the equivalent to a £4,600 increase in value for the average property, according to the latest Land Registry figures. Just 4.8% think house prices will fall in the next twelve months. Overall consumers thought house prices will rise 5.4% in the next two years, and 11% in the next 5 years.
According to the survey, nearly nine in ten homeowners (87%) believed their property had increased in value since they purchased it. The average homeowner has owned their house for over 8 years and believes their property has gained 64% in value. According to Land Registry figures, a 64% increase over this period of time (Dec 2001 to Mar 2010) would represent an increase in value of £62,064. But for the same period the average house price has actually risen by £67,313, an increase of just under 70%. This means that the average home could be worth £5,249 more than the typical homeowner estimates. 12.5% of homeowners thought their home is now worth 2-3 times the price they paid for it originally. This supports the mantra that home ownership remains a good long term bet.
David Newnes, estate agency managing director of LSL (owner of brands Your Move and Reeds Rains), commented: “People haven’t woken up to the extent of the recent house price increases– they’re ahead nearly £5.5k! Property values have continued to climb back to their previous heights, and as the stamp-duty threshold has been raised for first-timers, confidence has surged back to the housing market. We’ve seen a boost in the number of sellers across our network – not to mention a steady growth in buyer interest since the turn of the year. The election seems to have had little impact on buyer and seller activity over recent weeks.”
