The NAEA has revealed its predictions for the UK property market for 2013, saying that house prices will not go up and that first-time buyers will continue to struggle.
Hometrack is predicting much the same scenario, saying house prices will fall 1% this year. It believes house prices fell by just 0.3% last year, despite price rises in 20% of the country – and particularly in London. It says prices in the capital are now 10% higher than at the peak of the market in 2007.
Hometrack thinks London will continue to buck the trend this year, with prices rises of 2%.
Hometrack is also forecasting transactions to rise this year to 912,000, with cash buyers accounting for 35% of purchases. It believes there are more investors buying with cash than with a buy-to-let mortgage.
New NAEA chief executive Mark Hayward, who took up his post on New Year’s Day, cautioned against speculators predicting price surges, particularly in the South-East, suggesting the biggest challenge this year is for the market to adapt to the reality of the economic situation.
Hayward said: “I don’t believe we will see a surge in house prices during 2013 as some speculators have suggested. The market will continue to recover from historic lows since the recession, but that recovery will be slow and painful for many home owners, particularly those outside London and the South-East.
“In 2013 our big challenge is to improve the level of housing supply in the UK. Much more needs to be done by the Government to up the levels of new homes being built.
“More also needs to be done to support first-time buyers, partly by encouraging lenders to offer products to support those seeking to purchase their first home.
“Transactions will likely remain suppressed at this lower end of the market as many prospective buyers do not yet have the confidence to borrow.”
He added: “The north of the UK continues to struggle to keep up with the modest housing recovery in the south, and 2013 will see this gap widen.”
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Comments
Sir - firstly, a Happy New Year to you - and to all.
You draw the attention to your 'blog' from var nigh a year ago.
It was the now famous "orchestra" scenario, which, somehow, related to the housing market.
There were 517 comments that followed. The majority of the first 45 of them were from those who actually UNDERSTAND the housing market, who poured justifiable scorn on your musings. 116 of the comments are attributed to yourself (difficult to spot, as you swapped identities half-way through the proceedings...). In many of these, you simply told those who disagree profoundly with you (ie anyone in the property industry who appreciates that your entire 'plan' is pure bunkum...) to "go away" - you said that quite a lot, if you look back...
Interestingly, you have left the last comment unanswered. Perhaps you have not even 'realised' that I posted it - it was posted almost two months after your last pathetic attempt at driving some traffic to your woeful blog and website, which clearly failed as spectacularly as your insane attempts to change the housing market to suit your woefully hidden agendae.
Maybe, as you have attempted to draw attention to the above storyline once again you need to revisit it yourself and try to answer my points in a way that does not leave you looking like a complete berk.
Then again - if previous attempts are to be considered as evidence to your capabilities to do so, maybe better not?
I sincerely hope that, in 2013, you DO actually come to Realise Reality and LEAVE ALONE WHAT YOU CLEARLY DO NOT UNDERSTAND!
Love and kisses, PeeBee
ESTATE AGENT!
(yes, Sir - you HAVE had an effect on the market. Thought I'd better re-engage and get back to the coalface. If there are people like you out there - I want to be at them!)
At last, one of the leading bodies in agency talks some sense.
I hereby rest my case, previously published 11th March 2011 at:
http://www.estateagenttoday.co.uk/web_pages/Peter-Hendry-