Natiowide predicts flat growth in house prices next year |
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Fri, 18 Nov 2005 12:05
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LONDON: Mortgage lender Nationwide Building Society has said house price growth will be flat over the next 12 months. Nationwide's head Philip Williamson said he found little growth in the prices over the next one year.
Williamson's assessment comes in the wake of reports of recovery in the housing sector. Both the Land Registry and Office of the Deputy Prime Minister had put out official figures that house prices were indeed falling at a slower pace, even as mortgage lending picked un following the cut in interest rates by the Bank of England in August.
Nationwide itself, earlier this month, had reported that house prices have increased by 1.3 per cent in October, leaving the average house price at 157,107 pounds. However, it had sounded that it was early to say the prices will continue to go up.
The company pointed out that house price growth had stagnated in 2005, but in a controlled way.
Official statistics show that house prices are currently 3.3 per cent higher than they were 12 months ago, though the speed of growth has fallen by four-fifths in the last 12 months.
Analysts tend to agree with Nationwide's forecast. They say large availability of properties means that buyers will have choice. If prices go up steadfastly, buyer interest will diminish, thereby arresting prices.
Meanwhile, Nationwide, by far Britain's biggest building society, said its net mortgage market slid to 8.3 per cent in the six months ended September, but Williamson is hopeful it will be around 9 per cent at the year-end. The society's pre-tax profit for the half-year period ended 30 September rose to 255 million pounds from 224 million pounds in the same period last year.
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