Monday, December 19, 2011
UK property market will see
'gradual' recovery in 2012
- NAEA says 2012 will be
a re-run of 2011
- First time buyers still
face the biggest challenge
The National Association of Estate Agents (NAEA) today revealed
its predictions for the UK property market over the next 12
months.
NAEA chief executive Peter Bolton King said 2012 will see a
'gradual' recovery for the UK property market, as it continues to
bounce along the bottom - with no "great upturn" to mark a change
from the previous 12 months.
Mr Bolton King said: "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."
However, a lack of available finance will remain the biggest
barrier to would-be home buyers in 2012 warns Mr Bolton King, with
first time buyers in particular struggling to access mortgage
finance from many major lenders.
He said: "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."
Commenting on regional variations, he said: "What we will see in
2012 is a continued increase in 'micro-markets' across the country.
Demand for property in some areas fuels a healthy market while
other, less desirable areas, are in danger of being left behind.
Even within the same town we see some types of property proving
more popular than others.
"Pressure for housing will increase in London and the South East
throughout 2012. The top end of this market will also remain very
resilient, and we believe that purchases from overseas investors
will continue apace."
Overall Mr Bolton King believes that house prices, on average,
will see little change. "Confidence in 2012 will be a key factor
and this, to some extent, will be driven by the media."