Homeowners ‘expect house prices to fall this coming year’Friday, 21 October 2011 09:07
One in four of the 1,500 households surveyed for a country-wide property index said that the price of their home had fallen this month, while just seven per cent said that prices had risen.
According to Knight Frank's October house price sentiment index, public sector workers perceived that the value of their home fell more quickly over the last month than those working in the private sector and those who are not working.
Lower prices were reported in all regions, although those living in London thought that the value of their home fell at a more modest rate than those living outside the capital, the study found.
The sharpest falls were reported in the West Midlands and Wales.
The future index, which measures what households think will happen to the price of their property over the next 12 months, also turned negative this month, Knight Frank said.
Households in eight of the 11 regions expect prices to fall in the coming year, the largest proportion of regions with a negative outlook since May.
Those in the North East are expecting the biggest declines, followed by those in the South West and Yorkshire and the Humber.
Only three regions expect house prices to rise in the coming year – London, the East of England and the South East, according to the index.