House Price Update to 27 October 2010

UK House Prices Situation: Little substantial change, some falls

UK House Prices Forecast: Prices likely to weaken in many areas

BoE Report: Lenders Expect Weaker Prices

Most major UK mortgage lenders expect house prices to be "little changed or to decline slightly" in 2011, according to the latest Trends in Lending report from the Bank of England.

32% Expect House Prices To Fall

Public confidence in house prices is falling, according to a new survey by property website Rightmove. 32% of the 25,584 people surveyed expected house prices to fall over the next year, with 36% expecting prices to be "about the same" and just 27% expecting prices to rise. A year ago, 56% of those surveyed expected prices to rise in the next year.

Commenting on the figures, Rightmove's Commercial Director Miles Shipside said that it was clear that "the success or failure of the cuts in the wider economy will have a big impact on the property market."

A recent survey by property website Zoopla confirmed the trend seen in Rightmove's figures, albeit with a more positive slant. In Zoopla's survey, 25% of those surveyed expected house prices to fall in the coming six months, up from 11% three months ago. Although 63% of respondents expected prices to rise over the next six months, this figure was down from 78% three months ago – indicating a sharp increase in negative sentiment.

Looking At The Longer Trend – Prices Down In Q3

A look back at the summer months does not bring much cheer, either. According to mortgage lender Nationwide, prices fell in most regions during Q3 (Jul-Sept), dropping by an average of 1%. Scotland fared worst over the quarter, with average prices down 3.4%, while Northern Ireland showed some signs of rebounding from its vicious property crash with an average gain of 1.6%.

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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