North West houseowners ‘pessimistic’ about rises

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North West houseowners are the most pessismistic in the country about whether their property values will increase.

Optimism in the property market has slowed down, with fewer homeowners anticipating an increase in the value of their home over the next 12 months, new research from Clydesdale and Yorkshire Banks has revealed.

Just less than half (49 per cent) believe their home will increase in value over the next year compared to 54 per cent in January and 55 per cent a year ago.

A further 49 per cent anticipate that the value will stay the same whilst two per cent believe it will decrease.

In the North West, those figures are 32 per cent (increase), 62 per cent (stay the same) and six per cent a decrease.

Steve Fletcher, Director, Retail Banking, said: “It has been positive to see confidence returning to the property market.

“However our latest research has shown that this is levelling out with a drop in the number of people who believe their home will increase in value over the next year.

“There are still a number of property hot spots, such as London and the South East, where property prices are rising and we anticipate that this will continue however this is not mirrored across the UK as a whole.”

The key factor for those who think their home will increase in price is rising property prices as well as the positive impact of the economic recovery.

Those living in the South East and London are the most upbeat about rising property prices.

Sixty seven per cent in the South East and 64 per cent in London cite this as the main reason for anticipating an increase in the value of their home.