British households perceive that the value of their home increased in May, a survey from Knight Frank and Markit Economics showed Friday.
The house price sentiment index, or HPSI, fell slightly to 58.0 in May from 58.2 in the previous month. However, a reading above 50 indicates a rise in house prices. This marked the twenty-sixth successive month of the index remaining above 50.
A slight decrease in the latest reading showing that households may have factored in the uncertainty caused by the General Election to perceived price growth, the survey said.
The future HPSI, a measure of expectations on house prices, also dropped to 70.0 in May from 70.2 in April.
In May, expectations for future house price rises accelerate to a six-month high in London, with respective index rising to 77.7 from 73.8 in the preceding month.
Households in the East of England were most confident about price rise in May, although the corresponding index falling to 77.8 from 78.7 in the prior month.
The share of UK households planning to buy a property in the next twelve months fell marginally to 6.4 percent in May from 6.5 percent in April.
“The most likely area of the property market to experience an appreciable post-election bounce is the house building sector, as decision making should reaccelerate after several months of policy uncertainty,” Tim Moore, a senior economist at Markit, said.
“However, the long-term challenges of boosting house building volumes and the supply chains that support them are undiminished.”
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