Last year there was a time period when homeowners were becoming obsessed with watching their property values rise. It was moving upward at such a quick rate that it could actually be watched on property listing sites on a weekly basis. The rush of gazing at rising values has diminished as the housing market cooled in the last quarter of the year in 2014. Now with a weak global economy, a lack of demand from buyers, and tighter lending practices, homeowners are less optimistic about the value increase of their properties.

According to a new House Price Sentiment Index report from Knight Frank and Markit Economics, homeowners are not expecting any significant increase in their property values in 2015.

Tim Moore, senior economist at Markit, said, “UK house price sentiment cooled again in January, with the survey's gauge of current property values the least positive for over a year.

“All regions have seen a sharp moderation in house price sentiment from its highest point in 2014, with London and the South West experiencing the greatest slowdown from recent peaks.

“January's gradual drift in UK house price sentiment hints at slower trends for property values over the coming months, reinforced by stretched affordability and slow wage growth.

“That said, the balance of households forecasting a rise in their property value this year is still high by the survey's historical levels, suggesting that subdued interest rate expectations and falling consumer price inflation could limit the scale of any retreat in UK house price sentiment during 2015.”

The study reported that 19.5% of the 1,500 households polled across the UK believe the value of their home had risen in the last month. This offered a value reading of 58.2, which signals growth at any value over 50. This is the 22^nd consecutive month for a reading over 50.

Grainne Gilmore, head of UK residential research at Knight Frank, said, “House price sentiment has slowed across the country despite the cut in stamp duty introduced by the Chancellor George Osborne in December.

“Households in London and the South East signal slower annual rises in house prices this month than last month, an important development as these areas have been the engines of high house price growth over the last year.

“Even the prospect of record-low interest rates being in place for longer than anticipated has not been enough to lift expectations for house price growth on a monthly basis in January, however this, coupled with an expected rise in wage growth will likely result in modest price uplifts over 2015.”