Nationwide has predicted that the relative stagnation in house prices in 2011 will continue into 2012.
Last year, the average house rose in value by 1%, but fell by 0.2% in December compared with the previous month. ‘2012 is not shaping up to be much better than 2011 for the UK economy or housing market’, said Nationwide’s chief economist Robert Gardner.
There was an 8.7% fall in prices in Northern Ireland over the last year, a stark contrast with the 5.5% rise seen in London.
Using its own mortgage data, Nationwide calculated that the average home is now worth £163.882.
‘With 2012 shaping up to be a brutal year for jobs and the economy,’ said Nicholas Ayre of Home Fusion, ‘even low interest rates will become less of a support. If the economy deteriorates significantly, house prices in the UK will come under further pressure.’