Market still cooling
The UK property market is still cooling despite a slight rise in prices in December, government figures reveal.
Prices rose 0.4% in December compared with the previous month, according to the Department for Communities and Local Government (DCLG).
But the annual rate of house price inflation was 9.1%, down from 9.7% in November and the second consecutive monthly fall.
The DCLG said the average price of a home in the UK was £219,591.
The figures are the latest to suggest a cooling in the housing market, with the leading mortgage lenders having also predicted the market would be flat during 2008.
The DCLG said the UK annual house price inflation rate for the last three months of 2007, considered a more reliable indicator of the market, fell to 10% from 10.5%.
Bungalow prices drop
Prices in December were lower than they were in September and October, the statistics show.
The rise between November and December was the result of increased prices of detached houses (up 1%), terraced houses (up 0.6%), flats (up 0.5%) and semi-detached homes (up 0.2%).
But this was offset by a fall in the price of bungalows by 2.3%.
At its December meeting the Bank of England cut interest rates from 5.75% to 5.5%.
The Bank's Monetary Policy Committee decided to drop the rate by a further 0.25% last week, with many economists expecting further cuts during the year.
More Recent News
- New Year same trouble Alex Coxall 6 Jan. 2009 The 2009 RICS forecast predicts a further fall this year of 10% in average property price, which would mean a peak to trough drop of 25%. The predictions are based on the continued reluctance of lenders to lend and the increasingly glum economic climate we are facing. Read more
- Darling considers credit guarantees Bloomberg.com 11 Dec. 2008 Dec. 10 (Bloomberg) -- U.K. Chancellor of the Exchequer Alistair Darling is considering credit guarantees for households and companies to spur bank lending, a person familiar with the plan said. Read more
- Rics figures show November fall Alex Coxall 11 Dec. 2008 Figures released by the Royal Institution of Chartered Surveyors (Rics) show that property prices have continued to decline during November. Read more
- Price drop slows slightly Alex Coxall 27 Nov. 2008 The rate of house price drop fell in November according to figures released by Nationwide today. The market however remains nearly 14 % lower than it was a year ago, as buyers remain worried and lending remains curbed. Read more
- Housing market Downfall 27 Nov. 2008 Famous scene from an award winning film reworked. Read more
Be the first to comment
Nobody has made any comments on this entry - be the first to have your say below.