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New Year, same housing situation?

January 10, 2011

finance

The Halifax has announced that according to their figures, house prices were rising at an annual rate of just 5.2% in December, half the rate seen just three months earlier, the first time there had been an increase in the past four months.David Kuo, head of personal finance at Fool.co.uk, said: “The long-overdue correction in the property market will allow many people who have been waiting to move house to finally realise their dream.” Fool.co.uk also indicated that one in ten buyers have brought forward their house buying plans.

Commenting on the BBC, Martin Ellis of the Halifax said, “This mixed pattern of monthly price rises and falls is a typical characteristic of a subdued market”, and he predicted that house prices will slow down even more this coming year.

Malcolm Barr, economist for JPMorgan Chase believes that, “lenders have begun to cite the expectation of house price falls as a reason to tighten credit availability, and the data have moved to confirm those expectations, remains a significant worry,”

Despite various reassurances from many housing and mortgage providers, it looks like house price uncertainty is still set to continue for some time to come and tightening of mortgage lending may significantly effect the likes of first time buyers, but may also help lead to a reduction in the run away house prices experienced in recent years that are shutting many out of the market.

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  • hyip

    I only say Dollar down, rate up :( (( Ruefully

  • Monevator

    Let’s hope so. It’s been an absolute scandal the way house price rises have been praised by everyone in high office, when all they’ve done is effectively transfer money from the younger generation to the older one who long ago got the chance to buy houses on the cheap.

  • Robert

    I think this is a short term change and won’t last for long time, but thanks for the update.