HomeSale Update - Where are house prices in the UK heading in 2012?

03-02-2012

Mortgage rates across the UK are expected to be volatile throughout the first half of 2012. This will be affected by a number of factors, including lenders upping the cost of a mortgage for new borrowers, and uncertainty in the eurozone.

Commentators and analysts expect sales overall to stay low, possibly even lower than in 2011. Major players including Halifax suggest that a lack of confidence in the Eurozone could lead to a new banking crisis in terms of credit availability and the position of the banks.

Over the past few months it has also become apparent that there is a phenomenal gap between asking prices and actual selling prices, with sellers unwilling to drop their prices. This gap has suggested that over-optimistic agents or sellers have put houses up for sale as much as 40% over the expected selling price. Sterling’s effective HomeSale service can help struggling home-sellers manage their expectations by giving a realistic selling price and assisting in the overall service.

Interest rates are expected to remain low this year. Despite all these temporary market factors, one fundamental factor stands out – not enough homes are being built. In 2011, just 107,000 new homes were built, yet the government has forecast that every year from 2013-2023 240,000 new households will be formed due to the growing population and changing lifestyles.

For the most part, experts are predicting that the property market in 2012 will be remarkably similar to that of 2011, with one key difference – rising unemployment, which has meant that household incomes are more uncertain.

Expert Property Price Predictions 2012

• Ray Boulger - down 4%
• Bernard Clarke - "a broadly flat market"
• Jonathan Davis - down 10%
• Martin Ellis - "unchanged plus or minus 2%"
• Robert Gardner - "flat to modestly lower"
• Henry Pryor - down 10%
• Simon Rubinsohn - down 3%
• Ed Stansfield - down 5%

For more information on how Sterling’s HomeSale service can help you, please contact Stephen Alder on 01793 441902 or Stephen.alder@sterlingrelocation.com