“The Nationwide monthly house price index reported a surprise increase of 0.5 percent in March. The smoother quarterly figures suggest prices increased by 1.0 percent since the start of the year, although the annual price change slipped to - 0.3 percent.
“The current low level of transactions has contributed to monthly volatility. With austerity measures having a real impact on household budgets, homebuyers are reluctant to make the largest purchase of their lives.
“Across the UK, there continues to be some regional price variation, with the North of England and Wales, Scotland and Northern Ireland all faring worse over the year. In contrast, prices were up 2.1 percent over the year in London and even higher in the outer counties.
“For the rest of 2011 we anticipate mortgage lending to remain in the doldrums, frustrating demand somewhat. Alongside constraints on household budgets, this will prevent significant movement in house prices. However, our medium term view is that house prices are likely to improve into 2012 and beyond in line with a more sustained economic recovery.”
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Aisling Gray, Senior PR Manager, Hamptons International
020 7758 8422 / 0778 611 8634 / graya@hamptons-int.com
Adam Challis, Head of Research, Hamptons International
020 7758 8438 / 0776 016 3120 / challisa@hamptons-int.com