Growth trend continues even after recent weakness

Assetz House Price Watch compiles monthly average figures taken from five of the major house price indices to offer a more accurate picture of house price trends: Halifax, Nationwide, RightMove, CLG House Price Index and LSL Acadametrics.

Stuart Law, Chief Executive of Assetz, comments:

“The latest figures show that in spite of small fluctuations in the monthly data there is an underlying trend towards house price growth. We believe this is set to continue in 2011.

“The greatest influence on UK house prices continues to be the supply and demand imbalance, with supply massively constrained by a lack of development finance and the slashed budgets for social housing. The shortfall will continue to provide major upwards pressure on house prices. The impact of the government’s Spending Review cuts will go some way in suppressing the rate of house price growth but the recent fall in unemployment by 9,000 in the three months to September shows that in the run-up to the Spending Review, the market responded better than predicted. However, the impact of the cuts announced in the Spending Review are yet to be felt and we remain cautious.

“Nonetheless, I expect to see prices to continue to firm-up in November and December, which may well result in positive growth of around our predicted 5% by the end of 2010 from the current 3.6% annual rate.”

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