London homeowners expect property prices to rise in next year (From News Shopper)

London homeowners expect property prices to rise in next year - rest of country downbeat

12:32pm Monday 10th September 2012 in Bromley By Simon Bull

PEOPLE in London are feeling more bullish about the property market than the rest of the country, according to new figures.

In what could be positive news for anyone looking to sell but not such good news for anyone trying to get on to the property ladder and hoping for a fall in prices, London homeowners stand apart from the rest of the UK in believing their homes are increasing in value.

More than a fifth (21 per cent) of London homeowners say their property has increased in value from last month (versus eight per cent lower), and 44 per cent believe their home will continue to increase in value over the next 12 months, according to the latest results from YouGov’s HEAT (Household Economic Activity Tracker) index.

In contrast, 28 per cent of homeowners living outside London believe their house is worth less than it was in July.

Just 23 per cent say they expect house prices to rise over the next year, with 27 per cent saying the opposite.

Mike Nardis, senior vice-president at YouGov, said London remains one of the few bright spots in the otherwise gloomy economic outlook in the UK.

He said: “Londoners remain bullish on property. Its popularity remains in sharp contrast to the rest of Britain's sluggish real estate market.

“We expect it to substantially outpace the other regions. We see this across measures in HEAT. Londoners are much more positive on their outlook over the next 12 months.”