Housing market news this week is exposing further decline in the demand from buyers.  The Land Registry revealed that the average house price in the UK fell 1.3 per cent in December when compared to the previous year.  With the average house price at £160,384 there was no change from November.  There was also a fall in the number of houses sold in the higher million pound level by 10 per cent.

Annual house prices fell in most areas for 2011 except for London.  London has seen an increase in buyers especially from foreign buyers.  The Olympics is also helping to draw investors to area properties strengthening the housing market in that area.  London house prices experienced an annual rise of 2.8 per cent to £345,298.

The housing market with the hardest hit was in the Northeast.  The annual decline in house prices amounted to an average of £99,464 which was a level of a 7.1 per cent decrease.  The Southeast escaped the year with only a decline of 0.2 per cent.

Experts in the housing market have forecasted a further decline of 5 per cent for house prices in the UK.  This will be hard news to swallow for those homeowners that have had to watch their equity levels near the negative line.  There are many UK homeowners that purchased in the last few years that are now dealing with fighting negative equity.  Without any increase in house prices expected in 2012 homeowners will have to watch their equity levels decline and the best remortgage levels drift out of reach.  The housing market is expected to rebound starting in 2014.