Postive US prices bode well
According to UKValuation, these results should be seen as positive longer-term indicators for the UK – at a time when many commentators expect short-term UK house price growth to be lacklustre due to a ‘double-dip’ effect.
Commenting, UKValuation managing director, James Neave, stated: “US house prices are viewed by many as a leading indicator of UK housing trends. US house prices started falling early in 2006, and the significant falls in the UK only started in mid-2007. This bodes well for the UK if we are again to follow the US trend.”
There may also be even better news in the UKValuation forecast as, by excluding distressed sales, the figure rises to 1.4% growth. Further, by omitting the anomalous State of Michigan (home to struggling ‘motor city’ Detroit and set to see a decline of 10.8% by 2011) the overall 12-month forecast rises to 2.0%. Similar increases in the UK would equate to a house price rise of over £3,000 on the average property.