The survey, conducted to gauge people’s current perspective on the UK housing market over the next 12 months, five years and 10 years was sent to John D Wood & Co’s current and prospective customers, most of whom are interested in property within Central London.
Respondents were asked to think about a hypothetical house in Central London worth £1million and to state their view on whether values will go up or down over 12 months, five years and ten years, ignoring inflation.
Some 43% of respondents were "certain" house prices will rise over the next 10 years, 26% were "certain" they will go up over the next five years with only 8% certain that house prices will rise over the next 12 months.
Respondents were asked to quantify their perceived house price increases with answers split according to whether they rented their current home or were owner occupiers.
The results demonstrate how personal circumstances have a bearing on perceptions of the housing market with renters emerging as having a more pessimistic view on house price increases than owner occupiers.
Renters answered that they see house prices decreasing by 1% over the next 12 months with home owners perceiving a rise of 3%; increasing by 11% in five years time against 18% from owner occupiers, with both seeing a price hike up by 26% and 37% respectively, in 10 years time.
When asked about plans for buying property for owner occupation over the next 12 months, definite responses were given. This contrasted with answers to the same question but on purchasing a buy-to-let property, where respondents gave a more nuanced view.
This can be interpreted as people having much firmer plans about moving home while investors are taking a "wait and see attitude" towards buying a buy-to-let property.
Of the sample 44.8% of owners and 38% of renters stated they have no intention of buying a property, with 13% of owner occupiers and just over 5% of renters saying they are certain of buying a new home during the next 12 months.
Respondents were able to post open comments during the survey: 17% did so with the most frequent stating that the London Housing Market is different to the rest of the country due to lack of supply, the prevalence of international purchasers and bankers with bonuses. Many added that London’s property market is a series of micro markets.
Respondents also raised the fact that future interest rate rises and tight bank lending is likely to have an impact on house price increases.
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