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House prices fell 0.3% in January

Tahmina Mannan
Written By:
Tahmina Mannan
Posted:
Updated:
28/01/2013

UK house prices stagnated in January and fell by 0.3% versus year ago levels, according to the latest data released by Hometrack.

The number of new buyers registering with agents also fell 9.9% from a month earlier, while the number of properties listed for sale fell by 6.8%. 

However, 79% of estate agents surveyed said they were more optimistic about the prospects for the housing market over the next few months.

The data also highlighted that the shortage of houses and apartments for sale has been supporting house prices, offsetting the fall in demand.

Richard Donnell, director of research at London-based Hometrack, said: “Fears over Europe, the economic outlook, the impact of austerity, lower incomes growth and mortgage availability have, over the last two years, weighed heavily on demand and kept pricing under general downward pressure.

“Housing demand remains sensitive to the impact of external factors on consumer confidence.”