Tuesday, 7 August 2012

PROPERTY PRICES ‘FLUCTUATE’ THROUGHOUT 2012


Fluctuations in the property market are continuing throughout the middle of 2012.

Whereas May and June experienced an increase, house prices fell by 0.6% in July, according to the most recent Halifax House Price Index. This year has so far seen four monthly increases and three monthly drops, adding up to a flat and stagnant market.

‘Prices continue to fluctuate on a monthly basis’, said Martin Ellis, Halifax Housing Economist.
The outlook for the rest of the year remains uncertain at best, warned Halifax, citing reluctant sellers and cautious buyers as the potential cause of further stagnation.

‘Looking forward,’ said Ellis, ‘we expect little change in prices over the remainder of 2012 so long as the economic climate in the UK does not worsen substantially.’

Due to the high cost of moving house, many homeowners are staying where they are until they see concrete signs of economic improvement. 

The Chief UK and European Economist at IHS Global Insight, Howard Archer, commented on the Halifax’s findings, stating that ‘Limited activity, low and fragile consumer confidence, muted earnings  growth and relatively high unemployment’ mean that a drop in prices of at least 3% from current levels is expected over the rest of the year.

Halifax Data Shows UK Property Market Stagnant - myfinances.co.uk