Assetz House Price Watch is an analysis of house price data from ONS, LSL Acadametrics, Halifax, Nationwide and Rightmove, giving a comprehensive overview of the UK property market and a more accurate and less volatile picture of house price trends.
However, strong growth in the opening six months meant prices still ended the year up 3.4% The average price of a home is now £202,824, an increase of £6,634 since December 2011.
The annualised average rate of growth for December was -8.6% while the three, six and 12 month annualised rates of growth are -1.4%, -3.4% and 3.4% respectively.
Stuart Law, Chief Executive of Assetz, said:
“In spite of some downbeat forecasts, 2012 saw the strongest calendar price growth for three years, comfortably achieving our predicted 3%. Following a healthy first six months, there was an inevitable price correction in the second half.
“The UK housing market in 2012 was buoyed by an influx of buy to let investors from home and abroad which has increased competition for the best properties in areas where there is strong employment prospects, transport connections and amenities. For this reason, the market remains two tiered with London and the commuter heartlands of the South East and regional cities such as Manchester, Leeds and Liverpool seeing stronger prices rises than elsewhere in the UK.
With the base rate set to enter a fifth year at its historic low of 0.5% we could see many more new landlords diverting capital from low interest savings accounts to high yield property investments. This coupled with the greater availability of mortgage finance as part of the Funding for Lending Scheme (FLS) will support growth.
“We are confident of price growth of as much as 5% this year which would leave prices just shy of the 2007 peak in nominal terms and their highest since February 2008. The property market is well advanced on its slow road to recovery.”
