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Signs Of Recovery In UK Housing Market Despite Nov. Price Drop

Signs Of Recovery In UK Housing Market Despite Nov. Price Drop

Signs of recovery are emerging in the British property market with house prices posting the least severe November fall in three years along with some positive developments in other indicators, a survey by Rightmove revealed Monday.

Average asking price for a property in the UK fell 2.6 percent month-on-month in November to GBP 236,761. This was the weakest November fall since 2009. In October, house prices were up 3.5 percent.

Prices were up 2 percent year-on-year, the highest annual rate of increase seen in November since 2007. Excluding London, where prices continued to show an upward trend, the overall house price index still rose 0.2 percent on an annual basis.

London was the only region to report an increase. House prices in the national capital rose 1.2 percent month-on-month to GBP 483,709 in November. Annually, prices were up 8.8 percent.

Other positive developments observed included a 20 percent increase in search activity on Rightmove website and 11 percent rise in inquiries compared to the same period last year.

Rightmove noted that supply tightening in lower price brackets have pushed up prices on terraces and flats by over 4 percent. Another positive news was a 9.2 percent annual increase in mortgage approvals last quarter as reported by the Bank of England.

The relatively favorable price trends, alongside some positive signs from other lead indicators, suggests "a somewhat brighter outlook for 2013" as the market enters the traditional winter slowdown.

"Outside the capital, agents report prices are broadly flat in many parts of the country compared to a year ago. This stability may indicate a sounder springboard for 2013 as the wait goes on for a sustainable recovery in transaction numbers," said Miles Shipside, director and housing market analyst at Rightmove.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

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