With less than a fortnight of 2011 to go, conversation at the UK's dinner tables may already be turning to the future direction of house prices in 2012. Up, down, sideways; a recovery, a nosedive, a consolidation? Here's what the "experts" think.
Halifax is predicting little change in house prices in 2012. It says movement could be anywhere between -2% and +2% with only modest variations across the country. The lender's housing economist, Martin Ellis, says: "Prices are likely to be strongest in London and the south-east as these regions perform better economically. House prices outside southern England are expected to be constrained by these areas' weaker economic performance and their greater dependence on public sector employment."
He believes low interest rates and a lack of housing supply should support house prices next year, even in the face of weak economic growth and rising levels of unemployment. "The path of the economy during 2012 will, to a large extent, depend on how events in the eurozone unfold," Ellis says. "In addition, the extent to which households choose to reduce their debts will also affect growth over the medium term. As a result, the outlook for both the economy and house prices is particularly uncertain."
Pryor says homes are currently being overpriced by those trying to sell: "Asking prices from Rightmove and sold prices both from Halifax and Land Registry since the credit crunch show sellers have little appreciation of what has happened to deal prices. Estate agents contribute to this as some of them will give optimistic valuations in the hope of getting the business." Continued via 'The Guardian'
House price predictions: will the housing market warm up in 2012, or go into deep freeze? Photograph: Owen Humphreys/PA
It's been a tumultuous 2011 for house prices, and opinions are divided on how the housing market will fare in 2012.
