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House price surveys anticipate winter slump

Tuesday 20th November 2007

House price growth could be set to slow over the coming months as part of a "winter sales slump", it has been claimed.

Figures from property analyst Rightmove show a 0.7 per cent monthly drop in house prices in November.

All regions apart from London witnessed a fall over the course of the month - with the company predicting the results to be the start of a long-term slump.

Miles Shipside, commercial director of Rightmove, observes: "Prices are set to flatline in 2008.

"While we do not expect a price drop overall, there will be parts of the country that are over-priced."

The firm is not the only analyst to anticipate a subdued housing market in the coming months.

Both Nationwide and industry body the Royal Institution of Chartered Surveyors (Rics) have made similar claims recently.

According to Nationwide, house price inflation is to stand at zero per cent in November 2008, compared with the current level of 9.7 per cent.

Concerns relating to high interest rates and the continued fallout from the credit crunch are to combine with a lack of disposable income - due to factors such as high petrol prices - to prevent Britons from moving house, the financial services provider explains.

And Rics saw the greatest slowdown in its house price balance since July 2005, in research published last week.

Unsold properties over the course of October increased to 64.9 per surveyor, compared to 59.7 in September.

"The housing market is seeing the awaited slowdown that many had been expecting, with modest falls reported across most UK regions," spokesperson Ian Perry contends.©

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