An analysis of indices has shown that UK property prices were almost unchanged throughout 2011. It has been revealed that December saw the biggest monthly fall in prices last year as they dropped by 1%.
House Price Watch
Furthermore, the House Price Watch analysis of data from CLG, LSL Acadametrics, Halifax, Nationwide and Rightmove has portrayed that property prices, over the entire year, were almost unaltered with annual growth for 2011 being recorded at -0.1%. So, whilst less people may have been acquiring a new landlord insurance quote due to fewer people buying a home, actual property prices did not vary much at all it seems.
It has now been reported that the average price of a home in the UK is currently £195,166. This is around 9.6% lower than at the peak of the property market in October 2007 when the average price was as high as £215,089. That was however a time when the majority of people had more disposal income.
Rate of Growth
Meanwhile, this latest report has revealed the annualised rate of growth for each month’s data. Data is also regulated over three and six month periods, which provides a less volatile representation of market trends than individual monthly cut-outs. The annualised rates at three and six months show growth to be at -4.9% and -3.7% respectively.
Stuart Law, Chief Executive of Assetz, has been commenting on the House Price Watch data: “Property prices were relatively flat in 2011, recording a nominal annual price fall of 0.1% in December which translates as £268 in monetary terms. This lack of growth can be attributed to poorer job prospects, with unemployment now at its highest level since 1996 according to the ONS, and the ongoing Eurozone crisis which is impacting confidence and making lenders more cautious.”
Investors Returning
Mr Law went on to add that he expects a “Spring bounce” to occur and that London along with other major towns and cities have remained strong and on an upward curve despite the overall stagnation.
He also stated that the competitive nature of the mortgage market has resulted in more mortgage products becoming available on better terms.
It is expected that more investors will be, and already are, returning to the property market in a bid to take advantage of reduced prices. However, it is true that some landlords have seen minimal capital growth on their investment in the last few years.