Britons in southern regions experienced the greatest rises in July.
Confidence towards the property market rose further over the month, as households in ten out of 11 regions indicated that their home had increased in value, according to the latest House Price Sentiment Index (HPSI) compiled by property consultancy Knight Frank.
With anything above the 50-mark indicating a rise in property costs, July’s index generated an HPSI reading of 54.1 – an improvement on the 53.3 figure reported the previous month.
Those living in the UK’s southern areas perceived the largest increases, with both London and the East of England registering an HPSI reading of 57.7, followed by the South East and the South West at 56.9 and 55.1 respectively.
In terms of the future outlook for house prices, households across all regions expect property values to continue rising over the next 12 months, with the index signalling an uptick from 61.3 in June to 62 in July.
Whilst Britons in the capital remain the most hopeful of future price rises, those living in the South West and Scotland also reported significant surges in optimism from June, as data shows a growth of 8.8 and 8.3 index points in these locations.
Commenting on the index, Oliver Knight, an associate in Knight Frank’s residential research team, said:
‘Rising sentiment in July suggest that any uncertainty surrounding the recent General Election result, and the start of Brexit negotiations in June which could have weighed on pricing, has been offset by a lack of supply of housing for sale and the low interest rate, low mortgage rate environment which continues to underpin pricing across much of the UK’
Last week, the latest house price index by Halifax revealed that property price growth regained strength in July, after seeing the highest monthly increase to date in 2017.