Rightmove: House prices to break £200,000 barrier
Monday, 12 December 2005 12:00 AM
The price of an average property in the UK is set to break the £200,000 barrier in 2006, Rightmove predicts.
The property website says house prices will increase by four per cent next year, with house price growth underpinned by consumer confidence.
Rightmove's prediction comes despite its December survey showing a slight fall in house prices, as sellers lower prices to tempt buyers before Christmas.
According to Rightmove, the average house price has fallen by 0.8 per cent to £196,181 in December, reversing November's 0.8 per cent rise.
The fall in house prices occurred despite an increase in sales activity, with unsold property stocks falling from 69 per branch in November to 65 per branch in December.
It means house prices will end 2005 3.4 per cent higher than last year, and Rightmove is predicting much the same for next year.
"Affordability constraints, especially amongst first-time buyers, will cap price rises to the levels of average wage inflation for 2006 and some years beyond," Rightmove said in a statement.
"Conversely, price falls will be prevented by the ongoing stability of the UK economy."
It added: "We predict this will be enough to push average asking prices through the £200,000 barrier in the first half of 2006, a new record."
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