Property market confidence 'not just confined to London'

The property market upturn is an increasingly national phenomenon, a new survey has found.

The UK property market has not just seen a surge in confidence in London and the south-east, but across the nation, a new survey has indicated.

Research carried out by the Yorkshire and Clydesdale Banks has found the highest increases in optimism have occurred in the East of England and Yorkshire, while every region has seen a jump in confidence levels.

Across Britain 55 per cent of people believe their home will rise in value in the next year - up from 25 per cent just 12 months ago. In the case of the East of England, homeowners are four-and-a-half times as confident as they were at this point in 2013.

However, the highest optimism about rising prices remains in London, where 80 per cent expect their home to become more valuable, followed by the south-east on 70 per cent.

This upward trend may have significant implications for the financial sector as mortgage lending could be set to go on rising, which in turn could prompt growth in employment. 

Retail director for Yorkshire and Clydesdale Banks Andrew Pierce said: “We are seeing this positive attitude reflected in the growing demand for mortgages, our own and in the wider market, and the overall level of housing transactions."

He added that as the economic and housing market recovery are in their "early stages", emphasising that it is important for banks and building societies to "balance the demand for mortgages so as not to see a repeat of past issues."

However, he noted that the broad range of economic indicators are "pointing in the right direction for a sustained and sustainable period of growth".

Last week, the Council of Mortgage Lenders released new data showing how the UK mortgage market is growing.

It revealed that the number of home loans issued to home movers or first-time buyers in April was six per cent higher than in March, with the total value of them rising by 11 per cent month-on-month.

Compared with April 2013, the number of mortgages issued was up 43 per cent by number and 57 per cent by value.