UK Home Sellers Need To Reduce House Prices

The Nationwide report that consecutive house price rises in the UK is not sustainable while many pundits feel that they are actually unwelcome.

The UK housing market is seeing house price rise after house price rise and is deemed by Nationwide as unsustainable. Home owners are benefiting from property values the same as those in 2008. House prices have risen by 4% in the last 3 months. This news is not serving to kick start the market.The average house is worth £161,816, Nationwide’s figures show. Crucially, mortgage approvals are climbing again after a year of savage retrenchment by battered lenders.
Since February, prices have stabilised and most indicators are showing that property values are rising. In September, prices rose 0.9 per cent, the fifth month of consecutive growth.
The numbers of homes up for sale is still very low and with rising unemployment and the end of the stamp duty holiday around the corner the housing market could do with a break from house price increases.
Accidental landlords i.e. those buy to let owners who could not sell and decided to let may feel that £162,000 average house price is great news. According to Rightmove property asking prices in London have broken through the record high set in November 2007 as the drought of homes for sale around the country continues to distort the market.

Savills estate agents are taking a cautious approach, hedging their bets on what happens in the economy! They predict 2009 prices will finish 7% down year-on-year (ranging from a 6% fall in the South East to a 12% fall in the North East). During 2010 they expect prices to fall in the UK by 3% (ranging from a 2% fall in Scotland to a 6% fall in Wales).

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