What next for house prices?

By SIMON LAMBERT
Last updated at 4:53 PM on 24th February 2012


The latest house price news, predictions and market reports, analysed by This is Money's property expert Simon Lambert
The market outlook


The property market freeze saw home buyers hit the lowest level in 27 years in 2011 despite record low mortgage rates on offer, Council of Mortgage Lenders show.
Mortgages for house purchases fell below even the level seen during the 2008 and 2009 property slump when house prices were falling at almost 20% annually.
There were just 700 more first-time buyers recorded than in 2008, but the CML said that monthly figures showed new buyers are starting to rush to take advantage of the stamp duty break below £250,000 before it ends in March.
RICS' January report tried to find some silver lining to the dark property clouds.
It said that 12 per cent more members reported a rise in sales than fall in January, with some reporting a boost from first-time buyers trying to beat the March 25th stamp duty deadline. That contributed to 19 per cent more surveyors predicting a rise in sales than fall over the next three months.
However, 16 per cent more say house pricess are falling than rising and the supply of property being put up for sale is outstripping demand from potential buyers.
Seven per cent more members recorded a rise in new instructions rather than a fall, while there was a seven per cent net decline on new buyer enquiries and 15 per cent more members forecast falling rather than rising prices over the next three months.

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