The report found that households in all UK regions expect house prices to rise over the next 12 months, with the strongest growth expected by households in the South East.
However, both current and future sentiment on house prices moderated in April compared to March.
Grainne Gilmore, Head of UK Residential Research at Knight Frank, said: “Slightly weaker house price sentiment follows a period of healthy market activity between January and March which was in part promoted by purchasers trying to complete purchases ahead of
the April 1st introduction of the extra 3% stamp duty on additional homes.
Activity across the market may now become more muted, and in addition, the debate around the EU Referendum may convince some buyers to adopt a wait-and-see approach, although the UK’s position in the EU will not affect one of the key fundamentals in the market – an undersupply of new homes being built and existing homes for sale when compared to demand.”
Tim Moore, senior economist at Markit, said: “After a strong start to the year, UK property market conditions appear slightly more subdued in April, especially in relation to households’ expectations for price growth. While perceptions of current price growth are still firmer than at any time in 2015, expectations for the next 12 months moderated in April and were among the lowest recorded over the past three years.
This divergence between relatively brisk current price momentum and softer expectations ahead in part reflects heightened uncertainty about the nearterm economic outlook. Moreover, the latest survey highlights another brake on the number of UK households intending to purchase a property over the next two years, with this index down appreciably from its peak in February 2015.”
