UK property market likely to remain slow
1 year ago
However it must be remembered that this is good news for buyers. If property prices are going down then there might be more of an incentive for those aspiring to get on the property ladder for the first time to do so.
So it is worth looking more closely at the figures to see where prices are falling and indeed rising. In London prices have increased on average by 3.2% in the last 12 months. But there is a huge discrepancy in terms of location. Chelsea and Kensington has seen prices increase by 10.1% in the last year yet in the borough of Havering they have fallen by 3.9% in a year.
Even on a monthly basis there are troughs and lows. Merton saw the highest monthly increase in London at 1.8% while Hackney was down 0.8%.
There is clearly a complex regional picture in the current property market. It would also appear that well priced properties will sell.
The Nationwide releases its latest index tomorrow so it will be interesting to see what that shows. Its October index showed prices rising by 0.4% and up 0.8% on an annual basis, putting annual house price growth into positive territory for the first time in six months.
However, all the analysis I have read recently points to an uncertain outlook for the UK property market in 2012. Most agree it will be more of the same. There are simply too many economic uncertainties for much to change in the coming 12 months, most notably the eurozone crisis, rises in unemployment and lack of lending.
As people set to tighten their belts for an austerity festive season I cannot see much happening on the property market in December and I reckon it will be pretty slow during the whole of winter, then who knows what Spring might come. But then March is Budget time and unless there is some good economic news out of that the usual Springtime increase in the market just won't happen.
My gut feeling is that prices are still too high. Those who don't have to move and waiting and seeing in they might get a better price. But unless prices come down those elusive first time buyers will remain off the first rung.