New Year, same housing situation?

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.