74% of London homeowners expect their home will be worth more in one year, up from 51% at this time last year
On Monday, economic forecaster Ernst and Young became the latest to warn that a bubble may be forming in the booming London housing market. And the YouGov/Cebr Consumer Confidence Index now shows how the rapidly rising prices – which rose more 11.6% over the previous year from last November, more than twice the national rate – have transformed perceptions amongst London homeowners about the future value of their homes.
At this time last year, just over half (51%) of London homeowners expected their home to increase in value over the next 12 months, while 36% thought there would be no change and 12% predicted it would be worth less.
Today, three-quarters (74%) of London homeowners think their home will be worth more in 12 months’ time, compared to just 20% who expect there to be no change and only 6% who say their home will be worth less.
London house prices have long increased more rapidly than house prices outside of the capital, but the gap widened in recent years. Analysts point to increased interest in the London property market from overseas investors, particularly since the 2007-8 financial crash, as a key factor in driving up prices.