Property Values To Remain Flat In 2013

Residential property values increased by an average of 1.3% in December 2012 but according to the latest figures released by the Halifax, property values are likely to end 2013 at levels close to where they began.

UK Residential Property Values Not Expected To Change In 2013

UK Residential Property Values Not Expected To Change In 2013

The Halifax House Price Index revealed an average residential property price of £163,845 (GBP), up from £161,795 (GBP) in November 2012.

Over the course of the year, residential property values have remained little changed with six monthly rises and six decreases month-on-month.

Looking forward, the Halifax predicts 2013 will once again be flat for residential property prices with ‘broad stability’ in the market. It believes property values are likely to end the year at levels close to where they began

Figures measured on a quarterly basis are up 0.6%, the first time this has been positive in seven months amid signs of a firming in the housing market towards the end of 2012.

December 2012 Residential Property Prices

December 2012 Residential Property Prices

Prices in the three months to December were 0.3% lower than in the last quarter of 2011, the smallest annual decline since May.

Halifax economist Martin Ellis, said: “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. On an annual basis, prices in the final quarter of 2012 were marginally lower than in the last three months of 2011.’

Conversely, the Nationwide’s house price index reckoned that residential property prices actually fell 1% during 2012, reversing the 1% rise recorded by the Nationwide in 2011, and property values are expected to stay at similar levels or to drift modestly lower during 2013.

The average property price in the UK is £162,262 (GBP) according to the Nationwide report, with the North-South property gap continuing to widen.

December 2012 Average Residential Property Prices

December 2012 Average Residential Property Prices

But official figures from the Land Registry showed that values edged up 0.9 per annually despite slowing sales.

According to economists, house values in the UK are artificially high.

A host of experts were even polled by the Financial Times:

  • 44 said residential property was overvalued
  • 26 said residential properties are notovervalued,

Despite this very few of them expect any sharp falls in residential property values this year.

At the same time, a report by estate agent Knight Frank said the price of the average residential property peaked at £183,959 (GBP) in 2007 but values have fallen so dramatically they are not expected to return to this level until at least 2019.

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