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UK house prices expected to slow but will stay at elevated levels


02-21-2015

House prices are set to be boosted by cheaper mortgages and rising confidence this year

Expectations of house prices dropped to an 18-month low this month, new figures show today.

The Future House Price Index produced by estate agents Knight Frank and Markit fell to a score of 68.2, down from January’s 69.5.

Any figure over 50 indicates prices are rising, and the higher the figure, the steeper the increase.

The slowdown in house price growth expectations will only be partially welcome as prices remain at high levels. “Despite a sustained retreat in recent months, the latest survey indicates that overall house price sentiment remains at an elevated level by historical standards,” said Tim Moore, senior economist at Markit. Moore does not see the downturn in price growth gaining momentum either.

“Improving mortgage availab­ility, rising consumer confidence and a reduced likelihood of impen­ding interest rate rises all look set to support UK property prices over the course of 2015,” he said.

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