Households across the U.K. felt positive that their property values rose over the last month and would continue the course in 2017, but increasingly more owners expected no meaningful future change in their home prices, according to a report released Friday.
About 17.6% of the 1,500 households surveyed across the U.K. said that the value of their homes had risen since November, while 5.3% reported that their home values had fallen, resulting in a December reading of 56.1 for the House Sentiment Index (HPSI).
More:Trump Tower Sees First Apartment Sale Post-Election
The index, compiled monthly by real estate consultancy Knight Frank and HIS Markit, a market research firm, since February 2009, is an indicator for house price trends. A reading over 50 indicates that prices are rising.
December marked the fifth consecutive month since July with a reading over 50; that month, the index fell below 50 after the U.K. voted to leave the European Union.
December’s reading was a slight increase from the 55.3 reported in November, but lower than the 59.4 recorded a year ago, as well as the index’s peak of 63.2 recorded in May 2014. The index climbed above 50 in April 2013 after staying in the negative territory since July 2010.
"U.K. house price sentiment rebounded swiftly from its low point after the E.U. referendum, but confidence has now settled in at its lowest range for three-and-a-half years [since April 2013]," said Tim Moore, senior economist at IHS Markit.
"U.K. house price sentiment rebounded swiftly from its low point after the E.U. referendum, but confidence has now settled in at its lowest range for three-and-a-half years [since April 2013]," said Tim Moore, senior economist at IHS Markit.
"This pattern has been seen across all U.K. regions, likely reflecting heightened economic uncertainty and a more subdued near-term outlook for household finances," he added.
The future HPSI, which gauges how homeowners foresee the trend over the next year, dropped to 62.3 in December from 64.6 recorded in the previous month, while the percentage of households planning to buy a new property within next 12 month was also down to 5.2% from 6%.
About 54% of U.K. households expect no change in house prices in 2017, the highest level since January 2013, almost a four-year record, suggesting the easing of home prices is likely to continue.