Confidence among British households about their property prices continued to weaken in August, data from a survey by Knight Frank and Markit Economics showed Friday.
The house price sentiment index (HPSI) dropped to 44.5 in August from 45.6 in July, indicating that households turned more pessimistic about their home prices. An index reading below 50 indicates deterioration in sentiment, while one above suggests improvement.
The latest reading showed that British households perceived that the value of their home declined for the twenty-sixth consecutive month.
Looking ahead, however, households expect house prices to rise moderately in the next twelve months, though the outlook calls for the smallest growth since February. Regionally, households in the North continued to expect prices to fall, while those in the South forecast increase.
"The overall HPSI results suggest that households perceive the housing market to be at its weakest point in six months, reflecting the downbeat economic data which has emerged recently," Gráinne Gilmore, head of UK residential research at Knight Frank, said.
by RTT Staff Writer
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