House Prices Uk

It has been reported by Halifax that house prices UK in June saw a rise of 1% and they could remain stable for the rest of 2012

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This study has seen the average house price reach 162,417 and Halifax believes this rise is due to an improvement in employment figures and historically low mortgage payments.

Last year, prices fell by 4.2% annually, but there has been recently stability with the annual rate between 0 and 0.5% from April to June.

But according to Paul Ribbons, Property Trading expert, its just another opinion, with Halifax saying this, Land registry saying that, Nationwide saying the other.

He believes that the property market is very vulnerable at the moment and pockets are increasing. But this is on a knife-edge.Who knows where prices will be in a years time.

There are three things drive the property market:

Supply and demand

Availability of affordable and obtainable mortgages

And lastly sentiment and confidence

At the moment in certain areas there is a very short supply and this creates a bubble.In many parts of the country the property market is pretty much stagnant.

The ability to obtain a mortgage is still very tough and a large deposit is required and whilst this continues the market is very vulnerable.

The market should be bad but because of the lack of funding the average vendor doesnt put their property on to the open market ,so what few buyers are out there are chasing less property causing prices to stabilize and in some cases rise.

In addition, interest rates are low enough so that people who could have got into difficulty manage to stay in their homes especially as the rental market soars as it is cheaper for them to stay in their properties than rent somewhere else.

This is the most artificial market we have ever seen in the property industry.

People are fearful of losing their jobs, which stops them placing properties on the market or buying. Therefore the mortgage market is propping up the property market along with cheap interest rates. More buy-to-let buyers are entering the market along with cash buyers looking for a safe haven for their money.

What is the future for house prices? Short term - its anyones guess. But when lending starts to get back to what I call reasonable levels similar to the late 1990- early 2000s then watch it go skywards and then you should hold on to your hat as I believe the pent-up demand will push prices higher and quicker than we have seen for a long while.

If you would like advice on property investment or house prices UK, get in touch with Paul at www.paulribbons.com

by: Paul Ribbons

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