London homeowners are sitting pretty as they estimate the value of their property has increased on last month. 21% of homeowners in the capital say their property increased in value in the month of July versus only 8% UK-wide.
Londoners are also much more optimistic about a rebound in the housing market than the rest of the country. Nationally, 23% of homeowners say they expect their home prices to increase in the next 12 months versus 44% of Londoners. In contrast, 27% of UK homeowners expect their property's value to decline over the next 12 months versus only 8% of London homeowners.
London property has outstripped the rest of the UK in terms of value increases throughout 2011 and 2012. Property prices in the capital increased an average of 6.5% in the 12 months to June 2012, which drove a 2.8% rise in England as a whole. UK property rose by a smaller 2.3% - this figure was offset by declines in Scotland (-1%) and Northern Ireland (-11.9%) according data from the Office of National Statistics released last week.
The boom in London’s housing market is set to continue, according to economists. A forecast by the Centre for Economics and Business Research predicted house prices would rise by 14% over the next 3 years, as demand for centrally-located property outstrips counteracts housing availability.
Backward-looking sentiment: UK and London property value:

Forward-looking sentiment: UK and London projected value:

Methodology:
The Household Economic Activity Tracker records homeowner sentiment as a result of a series interviews conducted with UK consumers. The most recent survey was conducted in the August 1 to August 14 period.