Archive for the 'House Prices' Category

Halifax have just released new figures for July, showing that average house prices dropped by 0.6% to just over £161,000. Since this followed 2 months of small increases though, the drop merely took prices back to where they were at the start of May.

They also showed that house prices are now roughly where they were in the summer of 2009. The situation may be gradually improving though, with the number of sales in the first six months of this year, being 10% higher than the same period last year.

New figures from Halifax suggest that house prices fell by a huge 3.6% in September – the biggest monthly fall since Halifax’s records began in 1983. Despite this record fall, house prices are still 2.6% higher than this time last year, with the average house valued at just over £162,000. The figure is similar to the value of 3.1% recorded by the Nationwide for house price fall in September. Halifax did comment that low volumes of sales contribute to volatile fluctuations in house prices. They also added that the large number of houses available on the market has pushed prices down.

Homeowners who bought their property at the peak of the property market in 2007, have been warned they will have to wait until 2014 if they want to recover what they paid for their home according to the National Housing Federation. Their findings are based on forecasts Independent economists Oxford Economics forecast house prices would increase 22% over the next five years ? fuelled by a chronic under supply of new housing. According to the research, house prices will rise 7.5% this year, but will then fall again in 2011 by 3%, before recording a modest increase of 0.9% in 2012. This is probably difficult news to hear for people who did buy at the peak in 2007. But do remember, that it also means that your next house is also cheaper – if you are moving up the property ladder. Whilst it may be difficult emotionally to sell at a loss; if you have the cash available, you may be able to save yourself money by moving up the ladder sooner, rather than later.

For the first time since July last year, more surveyors report that they have seen prices fall in the last three months, than those who have seen prices rise – although the majority say that they haven’t seen any movements in prices.

The Royal Institution of Chartered Surveyors (RICS) say that the fall is due to more people putting their property on the market, while there are fewer inquiries due to people finding it difficult to obtain mortgages, and some people being put off by a fear of unemployment.

RICS spokesman Ian Perry said “Significantly, the forward-looking price expectations numbers suggest that this softer trend will continue through the second half of the year.

The Department for Communities and Local Government’s house price index also reflects the fall in property prices. It shows the annual rate of increase fall to 9.9% in June, from 10.6% in May.

What do people feel about this? Are you glad that the property you have your eyes on, isn?t getting more expensive? Or are you more concerned about the value of your own property? Leave a comment to share your views.

Nationwide’s figures for January 2010 show that house prices rose by 1.2% in month, and bring the year on year rate of increase to 8.6%. This brings the cost of the average UK home to £163,481. Following 9 consecutive months of property price increases, then unless there is a sudden change in February, annual rate of price increase will move to double figures for the first time since May ’07.

News that the UK economy finally emerged from recession in the fourth quarter of 2009 has strengthened confidence in the property market, even though the emergence was very weak (i.e. 0.1%!).

Unfortunately though, house price increases are not being matched by average earnings increases, with many workers facing pay freezes or even cuts. This could ultimately at least slow the house price recovery or even bring it to a halt, if demand for houses drops.