UK House Prices Situation: Little or no growth in most areas

UK House Prices Forecast: Slowing growth as year progresses

Two-Thirds of House Prices Unchanged in January

New data released by RICS (Royal Institute of Chartered Surveyors) suggests the market is continuing to slowdown gently. According to RICS, two-thirds of UK house prices remained unchanged in January, with the bulk of the growth that was experienced being in London and the South-East.

RICS also reported that only 28 per cent of its members had reported a rise in property prices in January – against 36 per cent in December 2006 – providing further indication of a gradual slowing of the market.

Buyers Shun Houses Needing DIY

Growing numbers of house hunters are looking for homes that are ready to live in and do not require extensive DIY, according to a survey by the Clydesdale Bank. Of those surveyed, 37 per cent said that they did not want a house in need of work – a 60 per cent increase over the last 15 months.

DIY chains have recently reported falling sales, and the growing focus on homes that are ready to live in could also help to dampen house prices, as buyers choose homes to which they are unlikely to add much value through DIY work.

Are You Haggling? Buyers Gain In Confidence

In another sign the market could be slowing and the balance of power swinging from sellers to buyers, research from both the Nationwide bank and the Clydesdale Bank suggests that buyers are acting more assertively when negotiating a purchase price for a property.

Nationwide's survey showed that only one in eight buyers are prepared to offer the asking price straight away, with 21 per cent making offers below the asking price first. Clydesdale Bank's survey also supported this, finding that 63 per cent of buyers would not be prepared to pay more than 10 per cent over the asking price – a reduction from 76 per cent, three months ago.