More people expect house prices to rise than fall in 2013

Alex Johnson

96d15d2edf0738f65724dba18531f0bf23b52e50 300x224 More people expect house prices to rise than fall in 2013Around 38% of people predict the average UK house price will rise over the next year, with less than a fifth forecasting a decline in prices, according to new figures from Halifax who interviewed 1,900 adults nationwide for the survey.

Martin Ellis, housing economist at Halifax, said: “Conditions in the housing market have been largely unchanged over the past 12 months with little overall movement in either house prices or sales for the second consecutive year. This remarkable stability, given the poor domestic and overseas economic climate, has probably been a key driver of the improvement in sentiment regarding the outlook for house prices over the coming year.

“Ongoing concerns over job security and the challenges in raising a deposit are likely to constrain housing demand and activity next year. Accordingly, we expect continuing broad stability in house prices nationally in 2013.”

Around half the respondents (53%) think it will be a good time to buy in the next 12 months, nearly four times the proportion feeling it will be a good time to sell. Just under one in ten think it will be a good time to both buy and sell over the coming months, suggesting the level of housing market activity is likely to remain subdued in 2013. More than half those questioned highlighted concerns about job security (58%) and the challenges in raising a deposit (55%) as the main barriers to buying a home.

The figures also show that:
* 39% of men predict that house prices nationally will increase in the next 12 months compared with 36% of women
* 16-24 year olds are the most optimistic regarding house prices while those in the 55-64 year age bracket are the least positive
* Regionally, the North East has the highest proportion thinking that it will be a good time to buy (66%) – London has the lowest proportion with 39% feeling that it will be a good time to buy in 2013
* Two-thirds (66%) of people predict that the cost of private sector renting will increase over the next year

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  • MaryWhite1970

    The reality of economics will be a little different to the armchair experts ‘guess’ I’m afraid.

  • Collins Lab

    Interesting that you could also title this article: “Only a 38% minority of people think house prices will rise in 2013″.

  • Blue Light

    With increasing inflation, stagnated salaries, and short term mortgage loans, the common man can’t really afford higher house prices in UK. So if the house prices actually rise due to wrong reasons like foreigners buying properties in London, I think the banks will be entering another bubble which would not be sustainable with the weak economic performance.. so it doesn’t matter what people think about house prices.. we should ask what the Banks or this Govt plan to do if house prices increase.

  • Ken Ward

    more fairytale nonsense from people with vested interests of a rise in property prices it aint gonna happen! the only way property is heading is down.

  • Mrs_Cake

    Everything is being done to fight market forces which calls for a collapse in house prices. Interest rates can’t really get any lower but the Govt. can’t afford a crash and the subsequent bank bail-outs. It is a stalemate which will see a gentle downward slide of prices which could last a decade or more. Look at what happened in Japan. 20 years on increasing population and downward property prices

  • John Ludike

    Bottom line as Landlord more than happy to raise rents accordingly as demand high.

  • Richard Gomer

    “16-24 year olds are the most optimistic regarding house prices”

    What does that mean? Given the frankly ludicrous amount of money one needs in order to buy a house, an optimistic 16-24 year old would be predicting a slump. Is that what you meant? Or are 16-24 year olds supposed to be hoping that property prices drive home ownership even further out of their reach?

  • andre_t

    use a property search engine and look for 3 bedroom houses (of flats)
    in London Zone 2, 3 …..500 000 for a shoe box (with 25% equity that
    makes 1800 a month)
    So its Zones 4 and 5 or the commuter
    belt, but transport cost virtually eats up the difference, forget about
    losing another hour or 2 a day

    116 families own over 70% of UK’s land, the wealthiest 1 % are land owners and property developers, the political parties have set themselves up right next to large property developers (Millbank Towers) …smell a rat, your generation is stuffed

  • Shaun

    Why are house prices so high? Why is it so expensive for us to own a home? Why was there a housing bubble? Why was there a housing crisis?

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