Barclays Capital Believes Upswing in the UK Housing Market is Possible
Economists with Barclays Capital believe the December monthly report regarding the UK housing market is a good sign that an upswing is in the near future. The report was generated through a market survey completed by the Royal Institute of Chartered Surveyors. The report describes the housing market as ending the year in a subdued fashion.
The net price balance, which is an indicator of pricing strength within the market, moved slightly north for the month. From the November reading of -17, it moved just one level to -16. This is the best reading posted since July of 2010.
London again led the housing market in home price growth during the past three months. It also was the front runner in regard to possible growth over the next three months.
Barclays Capital commented on the housing market and the near future, saying: “The market is essentially flat at subdued levels, although the outlook has strengthened somewhat from the low ebb seen at the start of 2011. We forecast prices to remain broadly flat in the near term. However, we expect a gradual strengthening in real household income growth, notwithstanding some slippage in the labour market, will see the housing market outlook brighten over the course of the year, with prices and the volume of activity both increasing in the second half.”
Sales predictions have cooled off from the October level, when more than 15% of respondents to the survey thought sales of homes would be increasing in the coming year.