NAEA sees Subtle Growth for UK Housing Market in 2012
The chief executive of the National Association of Estate Agents, Peter Bolton King, has made some frank remarks in regard to the UK housing market and its temperament over the next twelve months. He believes there will be an easing recovery for the market as a whole during 2012. He also thinks the market will remain along bottom, but experience small, short recovery periods. This trend will continue for the entire year but not see any significant movement upward.
King commented on the coming months, saying: “I don’t believe that we will see a significant fall in house prices over the next 12 months as some have feared. But equally, it is unlikely we will see any great upturn to help the market back to full capacity. It is likely that property transactions will remain at a similar level to that in 2011.”
King also notes how difficult mortgage lending will continue to be, especially for the group of first time home buyers. Lenders will continue to keep the reigns pulled back pretty tightly on the amount of cash they see leave the building, and that practice will dominate the behavior of any big mortgage lender.
He added: “Next year will see a continued lending barrier facing those entering the housing market for the first time, with major lenders sticking to tight mortgage policies. Clearly, when the Stamp Duty holiday disappears in the second quarter of 2012 it will become even more difficult for first time buyers to access the market.”