By Marcus Leach
According to Hometrack the price of homes in the UK stayed flat during the month of January.
This data reflects a slow start to the year, with an extension of the seasonal slowdown and weak consumer confidence.
“Given the pressure on household finances and the outlook for the wider economy, we expect only a modest improvement in levels of demand in the coming months," a Hometrack statement said.
"The net effect will be a continued negative balance between supply and demand, pointing to further downward pressure on prices in the months ahead.”
Results at a glance
- January’s survey shows a slow start to the year with an extension of the seasonal slowdown and weak consumer confidence. Both buyer registrations and sales have fallen and the underlying trend is one of tightening supply and weakening demand.
- Concerns over the economic outlook and Eurozone crisis have resulted in an 11% drop in demand over 2011 H2 and a 23% decline in buyers registering with agents between August and January.
- The supply of homes for sale has contracted by 7% over the last 6 months. Supply has not contracted to this extent since 2009.
- Nationally, house prices have not posted a month on month increase since June 2010 (18 months). In January prices remain unchanged.
- A small rise in London prices offsets falls in other regions. A trend that looks set to continue through 2012 as the Olympics firmly focus the eyes of the world on London, and overseas buyers, in the midst of global uncertainty, continue to consider London a safe haven.
Join us on