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November, 2011:

Houses Prices Will Not Be Rising Soon

The trend when it comes to houses prices seems to remain the same in the following period. So, although prognosis first indicated that houses prices can include a growing trend, it seems that specialists have come to the conclusion that prices for houses will not rise in the next months. Last month the prices for houses within the United Kingdom has risen with about 0.4 percent.

The average houses price in October was at about £165.650, and this meant an increase when compared to the same period of time, but last year. However, purchasing a house at the moment seems to be a rather good idea, having under consideration the low level of costs. The same thing will also remain valid over the next period of time, as specialists have claimed that the United Kingdom recovery when it comes to house prices growth is not expected to be very high in the following period. Houses prices are also expected to grow modestly over the next 12 months.

In 2012, houses prices are very likely to become even lower, economists expect. In fact, the prognosis indicates that their fall will be of about 5 percent from their current levels. The economy in the United Kingdom, as well as all over the world, does not show impressive signs of revival, so this evolution of houses prices is not really shocking. The level for houses prices is going to remain low, also being influenced by the low costumer confidence, weak economy activity and the increase of the unemployment level. So, although prices for houses are lower now than they have ever been, customers do not seem to be very willing to make such investments in new properties. Of course, to be able to purchase a new home, most people need to take money on loans and the harsh conditions imposed by lenders when offering new loans have a great influence on such decisions. Loan approvals have also decreased in the last few months, and in September statistics indicated that they were actually 2.6 percent fewer loans granted than the number of similar loans offered six months before.