House prices down for 20th month in a row
Friday, 17 February 2012 9:17 AM
House prices are perceived to have fallen for the 20th month in succession in February with even London not immune.
The Knight Frank/Markit house price sentiment index fell again to 43.1 –any figure under 50 represents a fall – with Wales (35.2) and Yorkshire & Humberside (38.2) seeing particularly sharp declines. London (49.5) dipped the least but was still in negative territory.
People are marginally more optimistic about the future with the index reading of 50.2 on those expecting the value of their home to rise in the next 12 months.
However, within that total there are sharp differences between people with a mortgage, who expect prices to rise, and those who own outright, who expect prices to fall.
People in London (59.9) expect the biggest price rise in the next year, followed by those in the West Midlands (52.2). However, Yorkshire & Humberside has the most pessimistic outlook (43.7), followed by Scotland (44.0) and Wales (45.4).
There are also big differences in house price expectations by occupation, with those in the media, culture and entertainment sector (63.2) strongly expecting a rise and expectations in the construction sector slipping from 55.4 in January to 39.2 this month.
Gráinne Gilmore, head of UK residential research at Knight Frank, said: "The outlook among households for property prices over the next 12 months varies on a regional basis, emphasising the multi-speed housing market.
"Yet the overall outlook is muted, reflecting the economic travails of the UK and the Eurozone which are sapping confidence in many parts of the UK."
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