Housing market ‘in better shape’ despite slow start to year
Property analysts believe the housing market started 2013 in “slightly better shape” than it has done in either of the previous two years, as prices stabilised in January.
Hometrack’s monthly survey found that house prices were flat month-on-month in January following six months of falls.
Around 16pc of postcodes saw prices fall in January, representing a significant slowdown in falls compared with the previous two months when around 27pc of districts recorded decreases.
London, which has consistently outperformed other areas, was the only region to see an uplift in prices, with a 0.3pc increase.
Prices were flat over the month in the East Midlands, the North West, the South East (HKSE: 0726.HK – news) , the South West and the West Midlands.
They fell by 0.1pc in Wales, Yorkshire and Humberside and the North East and by 0.2pc in East Anglia.
Numbers of people seeking new homes were on the decline, with a 9.9pc drop in prospective buyers registering with estate agents.
But despite the slow start recorded in January, 79pc of estate agents surveyed said they were optimistic about prospects for the spring market.
A slight easing of mortgage finance and a growing realism on selling prices were cited as reasons for their optimism.
Across the country, the typical percentage of the asking price achieved was 93.1pc in January.
“The housing market looks to be in slightly better shape than at the start of the previous two years,” said Hometrack.
Lenders and surveyors have previously said that they expect sales to pick up this year amid improvements to the mortgage market following the introduction of the Government’s Funding for Lending scheme.
Mortgage lenders have been slashing their rates since the scheme was introduced and the number of mortgages on the market has also increased.
“Agents are reporting sellers seeking valuations but waiting until the outlook becomes clearer before putting their home on the market,” said Hometrack.
“Five years into the downturn and with sales of homes still running at less than one million a year, there is a steady accumulation of pent-up demand to move. The spring housing market will be a key test of whether UK households are willing to act upon a slowly improving sense of optimism.”
Annalisa Piazza at Newedge Strategy described the figures as a “mixed bag”.
“All in all, the Hometrack survey depicted a quite sluggish picture for the UK housing market at the start of the year,” she added.
“That said, other surveys were less discouraging, pointing to some stabilisation in the UK housing market going into 2013. The overall picture remains mixed.”