Southern house prices to remain the strongest through 2013
11th Dec 2012
House prices in London have typically been the best performing buy a long way when compared to the rest of the UK property market over the last few years since the crash in 2007, even in spite of a recent fall in final sale values thought to have been brought about by an increased stamp duty levy introduced by the government earlier this year.
However, according to results of a new study conducted by Halifax, it is predicted that house prices in the south of the country, and in particular the south-east and London, are expected to be the best performing throughout the whole of 2013.
It is thought, said the building society, that there will not be much joy for those who are looking for large-scale increases in prices of properties for sale over the course of the next year. However, stability will once again be the key target, following a few months of annual sales over the past quarters.
Halifax said that the main barrier that the housing sector will have to overcome will be the fact that there still remains wide-ranging uncertainty over the economic future of the UK. In October, it was reported that the country had come out of recession at last.
However, at the same time, Halifax said that inflation is likely to sit ahead of governmental targets of two per cent throughout the year, meaning difficulty for consumers, and stopping any great growth in property sales, and subsequently prices.
Martin Ellis, Halifax's housing economist, said: "Conditions in the housing market are likely to remain much as they are against this economic background. Accordingly, we expect continuing broad stability in house prices nationally in 2013. Prices are again likely to end the year at levels close to where they begin with the market continuing to lack any genuine direction."
"The outlook for the UK economy remains highly uncertain. Risks in the global economy remain significant and how these evolve will be key determinants of how activity in the UK progresses over the coming year."
Posted by Staff Writer: Frances McDonald
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