The data revealed that Londoners reported the biggest perceived rate of house price growth over the course of the month. Expectations for future price growth also rose, reversing three months of softening expectations, with households in the South East expecting the strongest price rises over the next 12 months
The report also highlighted that 5.7% of UK households plan to buy a property in the next year.
Liam Bailey, Global Head of Residential Research at Knight Frank, said: “Against the backdrop of improving economic conditions an improvement in household sentiment towards the property market is not surprising. However, in spite of the rise, we remain of the view that new mortgage rules announced last year combined with affordability constraints in some parts of the country are likely to weigh on price growth in the short term.
The Help to Buy ISA, announced in Wednesday’s Budget is welcome boost for first time buyers and we expect it will have a positive impact on sentiment.”
Tim Moore, senior economist at Markit, said: “March’s survey highlights the first improvement in UK house price sentiment so far in 2015, although the upturn represents only a partial reversal of the slowdown since last summer. Improving economic conditions and positive labour market trends continue to support UK housing demand, while supply remains tight and there are signs that the revival in new housing starts has paused for breath in recent months.
Moreover, the expectation of low interest rates for longer remains a key factor supporting UK house price sentiment. However, stretched affordability and more stringent mortgage lending rules have helped to lower UK house price growth expectations from the post-crisis peaks recorded in 2014.”
