Posted on Monday, December 12, 2011
House prices in the UK will experience little change from -2% to 2%, Halifax has predicted in its UK Housing Market Outlook for 2012.
It also believes the Bank of England Base Rate will still be 0.5% at the end of 2012.
Favourable affordability, low Bank Rate, low levels of forced selling and the long term supply/demand imbalance were cited as market positives by the lender.
Market negatives were weak economic growth, pressure on household finances, high unemployment and mortgage funding pressures.
Martin Ellis, housing economist at Halifax, said: “The housing market has proved highly resilient in recent months despite the weak economic recovery and the significant deterioration in the outlook for both the UK and global economies.
“Continuing low rates should further support the favourable affordability position for both those who already have a mortgage and those who are able to raise the required deposit to buy a home.
“Overall, we expect continuing broad stability in house prices nationally during 2012. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any real direction.”
Richard Lowth, Managing Director at Richard Lowth & Co said: “Our expectations are for a fairly stable market again in 2012 with volumes continuing at similar levels to 2011.
Despite the Euro crisis and a challenging economic climate, we feel that the combination of low interest rates and an undoubted desire by people to own their own homes will offset any overall market issues and keep values fairly steady with relatively stable levels of supply and demand in the area that we cover.”
