The trade body believes that house prices will not fall significantly next year, but neither will there be a marked upturn in the market.
“It is likely that property transactions will remain at a similar level to that in 2011,” said chief executive Peter Bolton King.
A lack of accessible mortgage funding will continue to be the biggest problem facing borrowers next year, particularly first-time buyers.
Bolton King said: “Next year will see a continued lending barrier facing those entering the housing market for the first time, with major lenders sticking to tight mortgage policies. Clearly, when the Stamp Duty holiday disappears in the second quarter of 2012 it will become even more difficult for first time buyers to access the market.”
He added: “What we will see in 2012 is a continued increase in ‘micro-markets’ across the country. Demand for property in some areas fuels a healthy market while other, less desirable areas, are in danger of being left behind. Even within the same town we see some types of property proving more popular than others.
“Pressure for housing will increase in London and the South East throughout 2012. The top end of this market will also remain very resilient, and we believe that purchases from overseas investors will continue apace.”
Overall, Mr Bolton King believes that house prices, on average, will see little change. “Confidence in 2012 will be a key factor and this, to some extent, will be driven by the media.”
