1 Mar 2019
The disconnect between sentiment surrounding house prices and actual price results is important for investors in UK mortgages to appreciate, and potentially creates value for those that can go the distance in looking at the data.
Once a month, the Royal Institution of Chartered Surveyors (RICS) index asks its members (property appraisers) if they expect UK house prices to go up, stay the same, or go down over the next three months. The RICS index subtracts the percentage that predicted “down” from the percentage that predicted “up” to deliver the reading. The index does not give any idea of the magnitude of expected price movement, just how broadly the group believes in the direction.