House Price Update to 11 November 2009

UK House Prices Situation: Rising in some areas, static in many

UK House Prices Forecast: Falls in 2010

New RICS Figures Show House Prices Still Rising

New figures from the Royal Institution of Chartered Surveyors (RICS) show that house prices are rising in many areas of the country.

Of the surveyors who responded to RICS monthly housing market survey, 37% reported seeing an increase in house prices in October, while 52% reported no change and 11% saw a fall in house prices.

Completed sales were up from an average of 18 in September to 19 in October, having increased by more than 50% since May, when surveyors averaged only 12 completed sales each.

Reported stock levels were more or less unchanged, as they have been for several months. This is one of the factors that have been responsible for pushing house prices up; as demand as increased, stock levels have not kept up, resulting in upwards pressure on prices.

Leading Estate Agent Forecasts Falls in 2010

Leading estate agent Savils has forecast that the housing recovery will end in 2010, the underlying weakness of the economy fails to support any further growth housing market activity.

Savils has forecast that the main UK residential market – excluding prime residential properties – will fall by 6.6% in 2010, before starting to grow again in 2011. Despite the helpful effects of low interest rates, Savils does not think that the current recovery in house prices can be sustained into next year. This is a view shared by many economists, who are predicting a W-shaped recovery. A recent survey by iShares found that 61% of its investors are expecting economic conditions to worsen in 2010, resulting in a second recession.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

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