House price sentiment among mortgage borrowers is beginning to waver, new research has suggested.
According to the Knight Frank/Markit House Price Sentiment Index for May 2012, 53.4 per cent of home loan customers anticipate these costs will increase over the next 12 months.
Despite the majority of home loan customers remaining upbeat, this figure was the lowest level for this group since January.
Tim Moore, senior economist at Markit, noted this reduction may reflect concerns that higher standard variable rates are about to come into play.
Mr Moore stated: “People with a mortgage defied the overall trend and noted the weakest future sentiment for four months.”
He added these individuals reported a speedier monthly reduction in property values than that typically seen for all types of households in May.
Despite house price sentiment dipping among mortgage holders, 57.8 per cent of those living rent-free at home forecast a rise in 2012, while 54.2 per cent of individuals renting from a local authority and 53.8 per cent of those renting privately said the same.
