UK house prices were flat in January but downward pressure seen

Date: Monday 30 Jan 2012

The price of homes in the United Kingdom stayed flat during the month of January, according to Hometrack, reflecting a slow start to the year, with an extension of the seasonal slowdown and weak consumer confidence.

For the property research firm the underlying trend is one of tightening supply and weakening demand.

Furthermore, it states that, “Given the pressure on household finances and the outlook for the wider economy, we expect only a modest improvement in levels of demand in the coming months. The net effect will be a continued negative balance between supply and demand, pointing to further downward pressure on prices in the months ahead.”

Worth noting, according to its data national house prices have not posted a month on month increase since June 2010 (18 months).

The biggest decline in demand over the past 6 months was seem in Southern England (excluding London), “albeit from a high base.”

The percentage of postcode districts which registered price decreases diminished, to 19%, from 33% the month before.

However, the average time on the market for a property was 10.2 weeks, versus 10.1 in December, and the number of new buyers registering with agents contracted by 10.5%, after a fall of 6.3% in December.

AB

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