Twitter Facebook RSS FEEDS

Claims of a house price crash dismissed

Monday, 28 April 2008 12:00 AM

The UK property market is moderating, as opposed to dramatically falling, argues investment specialist Assetz.

Research from the company finds house prices are down just 0.1 per cent since the end of 2007, while the average house price in March 2008 was down just 1.5 per cent since the peak in October 2007.

Furthermore, the Assetz house price watch finds the three-month average prices for annualised house price growth have actually bounced back since the start of the year.

"While headline annual rates of house price growth are slowing, it is the short term data over the last few months that shows how robust the housing market is proving in 2008," said Assetz chief executive, Stuart Law.

"Three monthly average house prices paint a much clearer picture of market performance and reveal that average annual price growth has now flat-lined at around 0 per cent, with no significant decline having taken place," he added.

However, the Assetz claims are contradicted by virtually all other indicators in the UK property market.

Research from Halifax finds annual growth has fallen to 1.1 per cent, the lowest level for 12 years.

Looking forward, the Royal Institution of Chartered Surveyors (Rics) confidence in the future direction of the market has fallen to an all time low.

Furthermore, other experts are predicting large falls.

Richard Woolnough, manager of the M&G Optimal Income Fund, finds prices could fall 30 per cent from their present level, while estate agent Savills finds prices could drop 25 per centin the worst case scenario.

The IMF also views property prices in the UK as 30 per cent overvalued.

Despite this evidence, Assetz continues to predict a five per cent increase in prices during 2008.

"As I have been stating for some time now, the housing market is very unlikely to crash," continued Mr Law.

"The fundamental economics of supply and demand support this - the government has made it clear we need to build 240,000 new homes per year up to 2016 to meet current targets but in reality, today's housebuilders are building nowhere near this target.

"In fact, a fall, as opposed to an increase, in new starts is expected over the next two years," concluded Mr Law.

Chris O'Toole

Related stories

Champagne tower

Equity flow drives housing market, claims expert

Price growth will only really occur where equity flow exists, a housing research expert has argued.

 House prices in market towns have risen by £1,000 a month on average over the last decade, say Lloyds TSB. Image: Thinkstock

Market towns enjoy £1,000 a month house price rise

Over the last decade house prices in market towns have risen by £1,000 a month on average say Lloyds TSB.
Price of terraced homes rose £118 a day over the last decade, says Halifax survey. Image: Thinkstock

Terraces see highest house price rise

Price of terraced homes rose £118 a day over the last decade, says Halifax survey.

 Middle classes 'hammered by house price crash'

Middle classes 'hammered by house price crash'

Middle classes 'hammered by house price crash'

Tough times for property market

House price crash to last 5 years

House price crash to last 5 years

 Row of houses with beams

Average house price drops 4.2% year on year

HAlifax says house prices have dropped consistently over the past 12 months but should start picking up again this year.
The focal point for Olympic construction activity, Stratford, has seen a 13 per cent rise in average prices.

Olympic house price hike

House prices in East London are booming ahead of the Olympic Games according to new research from Lloyds TSB.

 Mortgage note with house keys

CML responds to Which? variable rate claims

Council of Mortgage Lenders responds to claims lenders not passing on rate changes to customers with a direct message to borrowers.
Property for sale signs

Springtime house price 'bounce' fails to arrive

RICS says the lack of mortgage finance and the state of the national economy are to blame for the market's continued flatness.

 Once again, only London bucked the trends. Image:Thinkstock

Only London bucks April house price fall

Recovery expected over next 12 months but north-south divide narrowing, finds Knight Frank/Markit.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

A guide to finding the right kitchen sink

When redesigning a kitchen or giving the room a makeover, it is important not to forget about the less obvious aspects of the space. Kitchen sinks are an essential fitting, but often overlooked, despite the fact there is a wide choice of styles available.

Useful tips to help find a flat in London

Looking for flats in London can be a frustrating process, given the capital's size, demand for rental accommodation and varying prices. It is vital, therefore, that you do plenty of research and act quickly to ensure you get the place that you want.

What do you need to consider when buying a mattress?

If you looking for a new mattress, you need to get the decision right, as getting it wrong could impact on your overall health and wellbeing. As well as comfort and size, you also need to consider other points, such as any health issues you may have.