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House Price Forecasts and Predictions in the UK

Checkout this weeks house price forecast here

 

House Price Update 28 December 2011

UK House Prices Situation: A lacklustre end to 2011

UK House Prices Forecast: 2012 promises more of the same in most areas

'Little Change' For House Prices in 2012 – Halifax

Mortgage lender Halifax has forecast 'little change' to house prices in 2012, expecting that average house prices will not rise or fall by more than 2%.

Looking back on 2011, Martin Ellis, Halifax housing economist said:

"House sales and the supply of properties on the market for sale have remained very stable since late 2010. These steady market conditions have helped to stabilise house prices and sales. As a result, the average price is currently little changed from that at the end of last year."

Halifax says that improved affordability, low Bank of England Bank Rate and low levels of forced selling will have a positive effect on the market in the year to come. On the downside, weak economic growth, high unemployment and mortgage funding pressures could have a negative effect on house prices.

First-Time Buyer Affordability Best For Eight Years

Housing affordability for first-time buyers is at its best since 2003, according to a new report from the Halifax.

Despite this, the number of first-time buyers (FTBs) is the lowest since 1974.

One reason for this may be the dramatic north-south divide in affordability. In the North, 75% of local authority districts are affordable for FTBs – compared to just 5% in the South. In London, there are no affordable areas for FTBs.

Halifax's affordability measure is based on whether the average house price paid by a FTB in a district is lower than someone on average wages for that area could afford to pay, based on a mortgage of 4 times earnings.

Halifax also noted that the average deposit paid by a FTB has increased from 10% (£17,482) in 2007 to 20% (£27,032) in 2011.

 

 


 

 




 





 



 



 

 

 


 

 

 


 

 

 





 

 






 

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