The Halifax has recently made some sweeping statements regarding the behavior of house prices and the overall stability of the UK housing market as we charge into 2013.  Instead of house prices falling, Halifax predicts they will rise steadily as the strength of the overall economy improves.  There is high unemployment predicted from several economists and wages are expected to remain subdued in terms of growth.  Beyond next year is difficult to estimate, and especially so due to the current low level of consumer confidence.  Until the financial debacle within Greece and other struggling countries improves, the nature of economies within the UK and the EU will have extreme strengths and weaknesses.

Martin Ellis, housing economist for Halifax, commented on the recent activities within the UK housing market and beyond, saying: “Conditions in the housing market have been largely unchanged over the past 12 months with little overall movement in either house prices or sales for the second consecutive year. This stability is remarkable given the poor domestic economic climate and the considerable uncertainty regarding the prospects for both the UK and world economies.”

Ellis continued: “There has been very little change in house prices overall during the past year with the average UK price in November almost identical to that in November 2011. Both demand and supply pressures in the market have altered little during the course of 2012, and this has been the key reason for the lack of anything other than modest changes in house sales and prices at a national level compared with a year ago.”

He added: “Challenging economic conditions have constrained housing demand whilst low interest rates have helped to support affordability and demand.  The FLS should help to ease credit constraints, resulting in some improvement in mortgage availability in 2013.”