House price growth dips in December
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The rate at which house prices are increasing slowed during December, according to the Royal Institution of Chartered Surveyors.
Some 30% more surveyors reported a rise rather than a fall in house prices last month in RICS’ latest housing market survey, compared to 35% in November.
Surveyors in London, the South East, the South West and East Anglia continue to see house price rises, whereas those in the North and West Midlands are recording house price falls.
RICS says this indicates that housing market recovery in less entrenched in some regions compared to others.
New instructions have grown for the seventh consecutive month, with 17% more surveyors reported a rise in the number of properties coming on the market.
Some 20% more surveyors found that enquiries from would-be buyers are on the rise, but overall enquiry levels appear to be falling back with the growth in enquiries rising at the slowest pace since last January.
But Jeremy Leaf, spokesman for RICS, says that new enquiries are still outstripping new instructions which in turn will help push house prices higher.
He says: “The recent loss of momentum in prices and the moderation in new buyer interest can be in part attributed to the housing market pulling down its shutters for Christmas.
“It is likely that the new year will see more interest and activity in the market as those who held back start to market their property with renewed optimism.”
Meanwhile the latest data from the Department of Communities and Local Government shows that house prices in November were up 0.6% on November 2008, and a 1.7% increase on October.
The government index also shows that in November the average house price for first-time buyers was 3.9% higher than a year ago.
Average house prices paid by former owner-occupiers were 0.7 % lower than November 2008.
The index puts the average house price for first-time buyers at £147,569 and the average house price overall at £200,454.
Jonathan Moore, director of Easyroommate.co.uk, says: “A lot of first-time buyers missed out on the cheapest house prices because they couldn’t get mortgages, and missed out on the stamp duty holiday as a result.
“Now it’s becoming trickier for young buyers to get a foot on the property ladder.
“We are yet to see lenders consistently offer first-time buyers realistic loan-to-value mortgages at cheap enough rates.
“This situation is only going to get worse as house prices continue to rise and larger mortgages are needed.”
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