House prices up just 0.4% on year
The latest house price index from the Nationwide Building Society has revealed a 0.4% rise for the month of December compared with November.
The latest rise means house prices are now just 0.4% higher than this time last year with the average UK home costing £162,763.
Commenting on the figures, Nationwide’s chief economist Martin Gahbauer, said: “Despite December’s increase, house prices have fallen in four out of the last six months and it would be premature to suggest that the recent downward trend has been broken on the basis of one month’s figures.”
House prices came under pressure this year as a high level of instructions outstripped buyer demand.
The prediction for house prices in 2011 is for a slight fall as demand for housing is expected to stay weak as a result of the uncertainty surrounding the economy and the Government’s massive spending cuts.
Some experts are predicting falls of around 5% in 2011, while many have suggested they could fall by as much as 10%.