UK house prices will flatline, says the Halifax
Published: 7th Jun 2012 09:55:25
UK house prices will end the year at the same level as now owing to tough economic conditions, a lender has predicted.
The Halifax, now part of the Lloyds Banking Group, said prices were broadly the same as a year ago, falling by 0.1% in May compared with a year earlier.
Various surveys have suggested the UK housing market is relatively stagnant.
But Halifax said prices had picked up between April and May, rising by 0.5%, to an average of £160,941.
These monthly figures are relatively volatile, having shown a 2.3% fall between March and April.
The three-month on three-month measure showed a 0.8% rise in prices by the end of May.
"While there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year," said Martin Ellis, housing economist for the Halifax.
"We expect this situation to continue with prices likely to still be around today's levels at the end of 2012 as the ongoing tough economic environment constrains housing demand."
He said that uncertainty in the economy and an "intensification" in the eurozone crisis meant that lenders would continue to be cautious in offering mortgages. This would continue to put the brakes on any housing market activity or price rises.
Halifax and rival Nationwide construct their house price data from samples of their own mortgage lending.
Even the prospect of low interest rates for another year or two, or even three, is not enough to convince people to buy”
A recent Nationwide survey suggested that prices were "fairly stable". The lender said prices rose by 0.3% in May, but this still left them 0.7% lower than a year ago.
The year-on-year comparison is calculated slightly differently by the two lenders. The Halifax compares the previous three months with the same three months a year earlier to give a smoother comparison, rather than a direct comparison of the equivalent months as calculated by the Nationwide.
One industry commentator said that a stable market was actually a sign of inactivity.
Ashley Alexander, managing director of estate agent review website MeetMyAgent.co.uk, said that major sporting occasions this summer would mean fewer people spending time out househunting.
"There are simply too many factors preventing a purchase. A lack of stock generally, intransigent sellers, tougher lending criteria and consumer caution are keeping transaction levels low," he added.
"Even the prospect of low interest rates for another year or two, or even three, is not enough to convince people to buy."
The Land Registry survey, widely regarded as the most comprehensive although it only covers England and Wales, suggested that prices had fallen by 1% in April compared with a year earlier.
At 20:00:13 in SportStriker Luke James and right-back Michael Duckworth have signed new contracts with Hartlepool United.
At 19:51:28 in EnglandA £12.5m leisure centre in Bedfordshire with a 25m swimming pool and four-court hall has been given the go-ahead.
At 19:44:50 in SportIsle of Man cyclist Andrew Roche will compete in his seventh consecutive Commonwealth Games on Thursday after being talked into it by Mark Cavendish.
At 19:41:21 in EnglandA vicar says he is "exasperated" after a restored cross on the site of a medieval meeting place in Cambridgeshire was stolen.
At 19:33:00 in EnglandLondon's West End is out-performing New York's Broadway, according to new research.
At 19:25:08 in EnglandA fire has broken out on Eastbourne Pier, sending up think black smoke and completely destroying part of the roof.
At 19:16:37 in WalesPlans for a £40m development in Conwy county could create 300 jobs if they get the green light.
At 19:15:49 in BusinessBank of America's Countrywide business must pay the US government $1.3bn (£769m) for selling defective home loans, a New York judge has ruled.
At 19:15:20 in SportPaul Scholes says he does not expect to return to Manchester United's coaching staff.
At 19:06:05 in SportJersey's Lindsey Greechan and Katie Nixon have secured a place in the quarter-finals of the women's pairs bowls at the Commonwealth Games.
Harvard CitationBBC News, 2012. UK house prices will flatline, says the Halifax [Online] (Updated 7th Jun 2012)
Available at: http://www.ukwirednews.com/news/1433211/UK-house-prices-will-flatline-says-the-Halifax [Accessed 30th Jul 2014]
News In Other Categories
Striker Luke James and right-back Michael Duckworth have signed new contracts with Hartlepool United.
Work on the eighth series of US sitcom The Big Bang Theory has failed to start on time, as the principal cast members fight for higher salaries.
With the doors to its brand new £1million training centre officially open, one of the UK's leading apprentice training providers, Bristol based S&B Automotive Academy, is showcasing its world-class facilities by launching a series of foreign student exchanges for the first time in its 41-year history. To get a flavour of what life is like as an apprentice in the UK, the Academy hosted 16 apprentice engineers and bus drivers from the G9 Automotive College in Hamburg, Germany, as part of a Europe-wide vocational training initiative called the ‘Leonardo Programme’ with support from the European Social Fund. In a reciprocal arrangement, S&B will be sending nine apprentices to Germany during February 2012 so that they can get an appreciation of life in the automotive industry on the Continent. A further three German exchange groups are being planned for next year. Designed to assist the development of vocational skills and training across Europe, including work placements for trainees, the Leonardo Programme has a budget of €1.75bn, which is helping to encourage UK organisations to work with their counterparts abroad. In what is expected to be another challenging year for employers in the UK automotive sector, S&B’s Chief Executive, Jon Winter, claims that the exchange initiative will bring many benefits to the Academy and its apprentices: “In a world of global automotive brands, it’s important for our learners to understand the international context of the industry they have chosen to make their career. This new exchange programme will enable apprentices and Academy staff alike to achieve a better understanding of the challenges and opportunities within the automotive arena in Europe. With the Academy’s influence also extending to the USA and Asia, there’s every possibility that this initiative could move further afield in the future.” Continued Winter: “The need for skilled technicians across the world is on the increase and we actively encourage our apprentices to look at broader horizons during their training. Many of them have already learned the phrase ‘Vorsprung durch Gelehrtheit’, quite simply, ‘Advancement through learning.” In the 2010/11 academic year, S&B doubled the number of successful Apprenticeships over the previous year with some 350 apprentices graduating from the Academy. At the same time, achievement levels reached an all-time high with an overall success rate of 85%. For those learners on the Advanced Apprenticeship three-year programme, success rates were even higher, at over 98%. PHOTO CAPTION: As part of their exchange visit, S&B Automotive Academy arranged for the German apprentices to visit Hampshire bus operator, Bluestar, at its Barton Park depot. The students are pictured with S&B’s Andy West (3rd right) and Steve Prewett, Bluestar’s Area Engineering Manager (2nd right). Ends http://www.sandbaa.com
Let me introduce you to the must have political gadget right now: the tape recorder.
Bank of America's Countrywide business must pay the US government $1.3bn (£769m) for selling defective home loans, a New York judge has ruled.
There has been a further delay of the review into children's heart services in Belfast, the BBC has learned.