View more on these topics

NAEA predicts stable housing market for 2005

The National Association of Estate Agents is predicting a stable housing market in 2005, continuing the slowdown of the last few months of 2004.

Peter Bolton King, chief executive of the NAEA, says:
“Last year we forecast that prices would rise at a much steadier price and that is precisely what we have seen happening in the last few months.

“As expected, house price growth has begun to stabilise and we are currently seeing price corrections of around -1% per month.

“Our monthly survey of estate agents at the frontline of the market also reveals that the end of 2004 will see prices on average 6% higher than the previous year.

“However we are not expecting there to be any significant drop in prices.

“The economic circumstances of the present day are very different to the crash of the early nineties, when unemployment was high, rate rises were vicious and the economy was suffering from recession.

“If anything, activity is likely to pick up in early 2005 when buyers begin to return to the market and this will see prices stabilise once more.

“Interest rates have matched our prediction to the word, currently sitting at 4.75%. It is uncertain whether or not the Bank of England will see fit to inflict further increases next year, but it is evident that they are not required by an already-calming housing market.

“Any rises that do occur will not see rates push much past 5%.

“In short, once again the housing market is set to disappoint those anticipating the fireworks of a crash.

“Stabilisation is the most we can expect, with 2005 more likely to see a more sensible house price growth of around 3%.”

Recommended

First Active brings snow to Trafalgar Square

First Active has transformed Trafalgar Square into a winter wonderland today, with real snow shipped in for the occasion.Responses to a survey of 5,000 people, asking what five things they believed made a perfect Christmas, proved so overwhelming that First Active decided to take over Trafalgar square and fill it with all the things that […]

SmartNewHomes.com predicts growth for 2005

SmartNewHomes.com has predicted a 2%-5% growth for the housing market in 2005.David Bexon, chief executive of SmartNewHomes.com, says: “The market in 2004 has pretty much followed our predictions of last year, with house price growth slowing significantly in the last quarter. “The series of interest rate rises by the Bank of England had a stabilising […]

Abbey launches six-month fixed rate at 4.54%

Abbey is introducing an introductory six-month fixed rate of 4.54% on its Flexible Plus mortgage from December 15. The product is aimed at borrowers who are unsure about taking a longer-term fixed rate in the current mortgage market, and has the added bonus of no extended tie-in if they decide it’s no longer the right […]

Wriglesworth predicts mixed year for 2005

Hometrack’s housing economist John Wriglesworth has predicted that stability will return to the housing market in 2005.Wriglesworth says: “This year has been a roller coaster year for house prices. “The first six months saw continued price rises before the market turned in July. “By November, Hometrack had reported a 0.6% decrease in house prices, the […]

Newsletter

News and expert analysis straight to your inbox

Sign up