House Price Update to 16 December 2009

UK House Prices Situation: Asking prices slowing but significant regional variations exist

UK House Prices Forecast: Prices will weaken in 2010, especially after the election

Rightmove HPI Shows Falling Asking Prices

Property website Rightmove has published new figures showing that average asking prices have fallen for the second month running.

November saw asking prices fall by 1.6% - December’s figures show a greater fall of 2.2%. This is not entirely surprising – there is traditionally a dip in the housing market over the Christmas period – but it could signal the start of a weaker market as we enter the New Year.

Rightmove’s forecast of 2010 is one of no overall growth; they believe that “the factors leveraging asking prices upwards pre-election will be countered by negative price forces post-election, the net effect being national average asking prices standing still during 2010.”

Rightmove’s Commercial Director Miles Shipside believes that anyone planning to sell in the New Year “should spend some of the festive period researching their local market” as “the election is likely to be a party pooper.”

Experts’ Forecasts for 2010 House Prices

Kate Barker, a member of the Bank of England’s Monetary Policy Committee, which sets interest rates, told Bloomberg in a recent interview that she would be “surprised” if the current growth in house prices continued into 2010.

Ray Boulger, of mortgage broker John Charcol, told the Telegraph that he expects to see a “modest increase in mortgage availability in 2010”, including improvement in the availability of high loan-to-value mortgages, which will help buyers with smaller deposits.

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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