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UK House Price Sentiment Continues To Weaken: Markit

Confidence among British households about prices of their homes weakened for the thirty-first successive month in January, though at the slowest pace since July 2010, data from a survey by Markit Economics and Knight Frank showed Friday.

The house price sentiment index came in at 47.6 in January, up from December's reading of 47.1. The index, however, remained below the no-change 50 mark - which separates improvement from deterioration - for the thirty-first consecutive month. The trend indicates that households who report a decline in home prices continue to outnumber those who report an increase.

Looking ahead, majority of surveyed households showed increased optimism that their house prices would rise notably over the next 12 months. The relevant index increased to 54.5 in January from 53.1 in December.

"Households have started the New Year with optimism over the outlook for house prices in their area, shrugging off gloomy news over the economy which has emerged this week," Gráinne Gilmore, head of UK residential research at Knight Frank, said.

"There has been some positive good news from the housing market however, with a modest pick-up in mortgage lending and signs that mortgage rates are starting to recede, especially on deals available to those with modest deposits."

by RTTNews Staff Writer

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