Further evidence of recovery
Commenting, he said: “The latest data on house prices from CLG provides further evidence of the recovery in the residential market. Land Registry numbers show a broadly similar picture and, significantly, the latest figures from the Bank of England show the cost of mortgage finance to be easing. This, alongside some tentative signs that money is becoming a little more freely available should help to continue to push prices higher for at least the next few months. Our own survey reflects a similar pattern with optimism on house prices rebounding smartly during January.
“However, although things are looking better at the moment, the second half of the year is likely to be more challenging again. Not only is the cost of secured borrowing likely to move higher, but the pre-announced increase in the top tax rate will begin to bite. Further fiscal tightening could also be announced after the general election. As a result, we suspect that the price trend is likely to stabilise and possibly turn down in the latter part of 2010.”