House Price Update to 23 December 2009

UK House Prices Situation: Slowing into a seasonal lull

UK House Prices Forecast: Slowing in 2010, especially around the general election

RICS Figures Suggest Demand Easing

New figures from RICS (Royal Institution of Chartered Surveyors) show that while housing activity has remained positive in the final months of 2009, it is easing, as are surveyors’ expectations.

A net balance of 35% more surveyors reported rising prices than falling prices in November. This was the best reading since November 2006. However, despite an increase in new sales instructions, surveyors reported a slowing of new buyer enquiries. Only 28% more surveyors reported an increase rather than a decrease in new buyer enquiries, down from 30% in October.

The net balance of sales expectations and agreed sales were also down on October’s figures, with just 22% more surveyors expecting an increase in sales rather than a decrease. Agreed sales slowed too – 24% more surveyors reported an increase rather than a fall in agreed sales in November, down from 28% in October.

Some of this weakness can be explained by the traditional seasonal downturn – very few people choose to buy or move houses around Christmas. The real test will be whether the housing market springs ahead again in spring.

Average UK Home Risen By £4 per Day In 2009

New figures from property website Zoopla.co.uk show that the average UK home has risen in value by £4 per day in 2009, thanks to a rebound in the property market. This translates to an average gain in value of £1,517 in 2009 – or £39 billion across the whole of the UK’s housing market.

Unfortunately, the gains have not been evenly spread. According to Zoopla.co.uk, homeowners in Gloucestershire did best, with a 3.8% increase across the year. Those owning homes in Merthyr Tydfil, however, fared worst, with an average fall of 6.2%.

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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