Despite a fall of 2.6 per cent since last month, UK house prices are expected to show signs of recovery in the new year.
A survey from property website Rightmove, measuring search activity, asking prices and inquiries, found that houses averaged £236,761 in November, down over £6,000 on October but up 2 per cent on the same month the previous year.
However, London prices managed to withstand the month-on-month decrease with a rise of 1.2 per cent in November and 8.8 per cent since last year, with prices averaging £483,709.
The Index also shows that while new sellers dropped their asking price by 2.6 per cent, that was the least severe November fall for three years.
This, alongside some favourable signs from other lead indicators, suggests a somewhat brighter outlook for 2013 as we enter the traditional winter slowdown.
The optimistic outlook was backed up by statistics earlier released from the Bank of England that showed mortgage approvals up 9.2 per cent over the last quarter, suggesting more completed houses sales next year.
Miles Shipside, director and housing market analyst at Rightmove comments: “Though the market
remains patchy and national statistics are given a gloss by a buoyant London market, there are a
number of positive trends that justify cautious optimism as the market enters its’ winter recess. Outside the capital, agents report prices are broadly flat in many parts of the country compared to a year ago.
This stability may indicate a sounder springboard for 2013 as the wait goes on for a sustainable recovery in transaction numbers.”
Some 77 per cent of UK homeowners believe their home will either increase in value or hold its worth over the next 12 months, the data showed.
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