February 9, 2009
UK Property - A Further Glimmer of Hope?
Although I published the latest Halifax house price index in a recent post stating that, according to Halifax's January figures, house prices increased by 1.9% in January. I was also quick to note that I thought this should not be considered in isolation as the start of the recovery in the UK housing market.
The Centre for Economics & Business (CEBR) has also tended to be rather more upbeat than other housing pundits. Benjamin Williamson, an economist at CEBR quotes "Prices and interest rates are now at levels whereby any improvement in lending is likely to lead to substantially increased activity and at the very least a bottoming out in housing prices."
The caveat to all this is that mortgage lending and confidence also start to flow in a positive direction. Nationwide recently conducted a survey of consumer confidence and the proprtion of people saying that now was indeed a good time to make a major purchase such as a house or a car rose to 33% from 27%. At its low in February last year was just 11%.
Maybe with interest rates now at 1% it's time those serious about getting in at the bottom of the market make their move!!
