House prices show improvement as market stabilisesThursday, 07 June 2012 09:31
The forecast for UK house prices is a stable one following a recent price rise.
UK house prices have recorded a slight rise for May for the second consecutive month.
According to the Halifax House Price Index there was a 0.8 per cent improvement in May’s figures compared to the prior three months.
May saw house prices increase by 0.5 per cent compared to April figures.
This also follows six consecutive price falls between October 2011 and March 2012.
This means house prices could remain steady as confidence is regained in the market.
“Whilst there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year,” Martin Ellis, Halifax housing economist said.
“We expect this situation to continue with prices likely to still be around today's levels at the end of 2012 as the ongoing tough economic environment constrains housing demand.”
Small rises in the average house price in the UK are most notable between January and May.
The average house price in May was £160,941, which sits 0.7 per cent above the price recorded in December last year.
Going forward Mr Ellis believes stability will hold out until the end of the year rather than any significant market movement.
“Overall, the trend for sales - like that for prices – appears to be one of broad stability," he said.