House prices in the UK remained flat in January, the latest survey by property analyst Hometrack revealed Monday. Prices have failed to show any increase since June 2010, it said.
Property prices saw no change this month after a 0.2 percent decline in December. Prices in London rose moderately during the month, offsetting price falls in other regions.
The survey showed that the number of new buyers registering with estate agents fell 10.5 percent year-on-year in January. The weak demand largely reflected dim economic prospects and concerns over the ongoing turmoil in Europe.
Also, the time a property stays in the market also increased to 10.2 weeks in January from 10.1 weeks in December and 9.9 weeks in November.
"The survey reveals a market dogged by uncertainty," Hometrack director of research Richard Donnell, said. "Given the pressure on household finances and the outlook for the wider economy as a whole, we expect only a modest improvement in levels of demand in the coming months," Donnell said.
The U.K. economy shrank 0.2 percent sequentially in the fourth quarter, marking the first contraction in a year.
The International Monetary Fund forecasts 0.6 percent growth this year in the U.K. and 2 percent next year.
Last week, Bank of England Governor Mervyn King hinted at possibilities of more quantitative easing given the fact that inflation is slowing and economic activity is weakening. But he sees no reason to despair as all crises will come to an end.
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