Andy Sommerville, director of Search Acumen, comments on the Knight Frank/Markit House Price Sentiment Index (HPSI) – July 2015:
“Consistently rising house prices have become a fact of life for the residential property market in recent years, but it’s a worrying sign on the surface that this appears to be dampening people’s purchasing plans over the next 12 months.*
“All the same, the market is yet to see the full impact of Mark Carney’s comments about an impending interest rate rise. The prospect of mortgage price increases in the near future may prompt households to reconsider their plans, and bring extra momentum to the second half of 2015 as buyers look to get in ahead of rising loan and house prices.
“Despite seeing some of the highest expectations for house price growth over the next 12 months, London and the South East are among the regions where intentions to purchase are the highest for the year ahead. Improving equity in their homes will help to give existing homeowners in these areas more financial clout.
“The data suggests conveyancers in these regions can look forward to a particularly busy period, to build on the 16-month high for transactions recently reported by HMRC.”