Positive News on UK Housing Market Continues - Some Fear it Could all be Short-Lived

by RichardM 2. June 2009 13:43

The positive news on the UK housing market continues to build. For the last month or so estate agent's have been reporting increased activity, most prominently through their regulatory bodies the Royal Institute of Chartered Surveyors and the National Association of Estate Agents. And now two indices have shown that this increased activity is having a positive impact on house prices.

Nationwide reported a 1.2% increase in prices for May, and the Land Registry showed that house prices fell just 0.3% in April, and both indices found that the rate of annual decline is slowing considerably.

However, this rush of positive news has led to many analysts forecasting a double dip, that house price falls could once again accelerate -- some believe that, ironically it may be the positive news that causes this. They think that because things are looking up that the thousands of people currently holding properties off the market will feel that now is the time to take the plunge.

Short-supply is widely regarded as the biggest fundamental driving prices to stabilise. Many analysts fear that if the supply balance scales are tipped the other way, it could reverse the price stabilisation and send house prices back into free-fall.

Property Investment firm Assets believe they are all very wrong, they said:

"The 'double dip' has already occurred and it is very unlikely we will see another dip in the near future. The negative effects on house prices from poor buyer sentiment and the lack of mortgages are now receding. House prices are very close to long term affordability, and interest rates are likely to remain low for the foreseeable future."

Time will tell who is right. We don't belief prices are finished falling yet, leaving private property sales communities like Zungalow as still in the driving seat when it comes to selling property. With Zungalow £29 allows you to list your property for the entire year, with or without a determined focus on selling. For that price the company believes you can always have your property on the market, and sell or rent it out whenever is right for you.

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