Posted: 9 January 2013 by Higgins Homes
In the kind of financial conditions that we have seen in recent years, house prices tend to receive a lot of airtime. They are often used as one of the main indicators of what the economy is doing and even a small shift can send ripples of nervousness through the market.
However, with house prices as they have been in the past 12 months mostly stable with only small discernible movement taking a view on whether these almost negligible tremors mean the glass is half full or half empty seems to depend on which survey you're reading. A survey by the building society Nationwide, for example, indicates that house prices have fallen marginally at 1.2% on last year's figures, with the average home in the UK now worth £163,853.
Factors, such as pay freezes and pressure on household budgets are key contributing factors as to why people might be willing to pay less for bricks and mortar. On the other hand, whilst economic growth in the UK has been slow, there has been much less impact than expected from unemployment, which at 7.8% in the three months running up to November 2012, has not reached the doomsday predictions of four million that some market experts were saying several years ago. These factors support the results of a survey produced by property website Rightmove, which covered 200,000 homes, and showed that although house asking prices fell 3.3% between November and December 2012, overall figures are up 1.4% on the year before.
This is supported by the Office For National Statistics, which released figures showing asking prices up 1.5% in the year to October 2012, and the Land Registry, whose figures for the same period were up 1.1%. Which statistics you choose believe depends on the data source you want your survey to be based on (property website, property registry etc). Most of these surveys, no matter what the results, acknowledge that any growth is being driven considerably from London and the South East, not generally across the country, making all of them slightly skewed for house prices in other areas.
For those currently looking for a new home, many commentators are expecting a rise in house prices for 2013 you can browse properties and monitor those within your budget on our developments.