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House Price Forecasts and Predictions in the UK

Checkout this weeks house price forecast here

 

House Price Update 21 December 2011

UK House Prices Situation: Asking prices weakening

UK House Prices Forecast:House prices will weaken further in many areas

Asking Prices Down 2.7% In Fragmented Market

Asking prices have fallen by an average of 2.7% in December, according to the latest Rightmove House Price Index. The drop leaves the annual rate of change for 2011 at 1.5% - considerably below the rate of inflation.

According to Rightmove, the market in 2012 will be similar to this year, with market conditions varying widely in different locations – often quite close to one another. Rightmove expects mortgage availability to remain "difficult" but low interest rates will continue to limit repossessions, meaning that prices remain relatively stable; Rightmove is forecasting a 2% rise in asking prices in 2012.

Rightmove's report notes that with RPI still at 5.2%, this year's rise in average asking prices of 1.5% corresponds to a fall in house prices in real terms, although below-inflation wage settlements mean that for many would-be buyers, affordability has not improved.

Rightmove also cites some statistics that highlight the localised nature of the housing market at present. House prices in Burton-on-Trent are down 12% in 2011, thanks to a 10% increase in new sellers over 2010. In comparison, just thirteen miles away in Tamworth prices are down just 0.8%, supported by only 2% fewer sellers than in 2010.

Rightmove's forecast for 2012 is that the number of sellers will continue to fall slightly, dropping below the 1.24 million recorded in 2011. This is about a third less than at the peak of the housing boom in 2007.

The number of first-time buyers is expected to be around 23% - considerably below the 40% which is considered necessary for a healthy market.

 

 


 

 




 





 



 



 

 

 


 

 

 


 

 

 





 

 






 

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