Bankers get house price jitters
Friday, 20 January 2012 10:55 AM
House prices continued to fall in January, with sentiment dropping especially sharply among people working in the financial sector, according to the latest Knight Frank/Markit House Price Sentiment Index.
The overall results showed that five per cent of households said the value of their home had fallen since December and 19 per cent reported a fall. The index fell to 43.2 from 43.3 in December, with anything under 50 indicating that prices are falling.
Property values are perceived to have fallen in all 11 regions of the country, with the sharpest declines seen in the North East and Wales and the smallest in London.
The future index, measuring what people think will happen over the next year fell from 49.7 to 49.3. Price rises are expected in London, the South East and in Scotland, but falls are anticipated everywhere else.
Sentiment about future price movements dropped sharply among people working in finance and business services from 58.7 to 43.1 – the lowest reading since the index began in April 2009.
Gráinne Gilmore, head of UK residential research at Knight Frank, said: "The sharp reversal in sentiment about future house prices among those working in finance and business services is also evidence of the toll being taken on that sector at present as many banks cut thousands of jobs.
"It is striking that this sudden fall in confidence coincides with the traditional 'bankers' bonus' season."
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