We have heard from lenders such as Nationwide and Halifax over recent months with reports of house prices going down, going up, even conflicting views on what is actually happening in any given period.
Then in July, the Land Registry figures, which are more rounded, and wide ranging than those of lenders own reports, brings news that the average house price has risen – by 0.1%. In the FT House Price Index report published by Acadametrics this morning, we see three key headlines:
- House prices in July rose by 0.1%
- Prices are now 10.9% lower than a year ago
- Housing Transactions are on the increase
The latter is one of particular interest, which details further that there were 27,000 property transactions in January 2009, rising to 47,000 transactions in June.
Given that the Land Registry figures are based on actual ‘sold’ prices, this is a true indication that confidence has returned to the housing market and buyers are actively making that move. One particular comment gives further confidence stating, “Overall, the evidence suggests that the market is ‘bottoming out’.” This report can be found via the Acadametrics link below.
More importantly, it indicates that the First Time Buyer is actively making that move as no chain can commence and complete without a First Time Buyer or similar ‘’chain starter’.
Yesterday (6th of August 2009), the Royal Institute of Chartered Surveyors (RICS) published a press release suggesting that they expect house prices to rise in 2009. Having previously predicted a 10% to 10% fall in 2009, they have revised their prediction to state that the average house price in Q4 of this year will be higher than in Q4 in 2008. They do however suggest that “Caution still the watchword”.
RICS have probably been one of the most cautious commentators on the housing market and these latest comments are certainly a sound and useful base rather than industry hype.
Whilst the previous views of Chartered Surveyors on property prices and values has held back recovery, it is the lack of available cost effective mortgage lending that is the main restriction moving forward.
Further reports and commentary on the housing market and prices can be found at:
Royal Institute of Chartered Surveyors: RICS Housing Market Report
FT House Price Index: Acadametrics website
Nationwide Building Society: March 2009
Rightmove: Rightmove website
http:/www.rightmove.co.uk/