Stable house prices expected in 2013, says Halifax

Unexpectedly, house prices were slightly stronger in December; increasing by 1.3per cent.

10:48 08 January 2013

Following the Funding for Lending Scheme launched in August, there was an unexpected increase in house pricesin December, 2012; a first time in the previous seven months.

According to Halifax, signs of a firming housing market were seen during the last months of 2012, as prices increased by 0.6per cent from October to December.

However, Halifax added that house prices for 2013 are unclear due to the outlook for the UK economy.

 

Martin Ellis, housing economist at Halifax said, as reported by The Telegraph: “Overall, last year saw an even mix of monthly rises and falls as prices lacked any real direction as both demand and supply pressures remained largely unchanged during 2012.”

 

“We expect continuing broad stability in house prices nationally in 2013 with prices likely to end the year at levels close to where they begin,” he added.

 

Halifax is convinced that a drastic improvement on house-buying isn’t expected this year. It added: “Subdued economic growth, sustained high unemployment and pressures on household finances will constrain housing demand.”

 

“The relatively low level of mortgage payments in relation to income, however, should provide support for house prices.”