House prices in the UK were up 1.1% in December compared to a year ago - the first annual rise since March 2008, according to boffins at the Halifax.
Prices rose by 1% in December compared with the previous month, marking the sixth consecutive monthly rise. The people at Halifax said the average home was now worth £169,042. However, the group thinks that property values will be flat in 2010 owing to the economic outlook - however here at Besley Hill we think prices could rise in the year due to the acute shortage of property coming to the market, increased demand and more relaxed lending.
The figures show that prices have picked up steadily in recent months, having risen by 9.4% - or £14,552 - from the trough of April 2009. This increase was driven, in part, by a shortage of the number of properties being put on the market. If potential sellers decided to put their homes on the market this would flatten any future pick-up but we feel this is very unlikely. The change in average prices for the specific month shows that the typical price in December 2009 was £169,042, compared with £160,070 in December 2008 - a 5.6% rise. In its house price index published last week, the Nationwide said that house prices had risen by 5.9% in 2009, with the average home worth £162,103. The UK's largest building society has also predicted that prices will show little change in 2010. Both the Halifax and Nationwide said unemployment figures had not been as bad as had been expected in 2009, which had helped demand for homes. The Halifax survey showed that prices were 3.5% higher in the final quarter of the year compared with the last three months of 2008.
All in all no one really knows what will happen in 2010 but at Besley Hill we are very optimistic that values and demand will improve this year as a result of relaxed lending, increased demand and restricted supply. Your views are welcome - why not e-mail me; adam@besleyhill.co.uk
No comments:
Post a Comment