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MS Poll Result: Direction of house prices unclear, say brokers

by: Mortgage Solutions
  • 16/12/2010
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The latest Mortgage Solutions poll shows practically a four-way split with brokers unsure which way property values will go in 2011.

In our poll, a slim majority (30%) of respondents think house prices will fall less than 5%, whereas 23% think prices will fall further than 5%.

Just under a quarter of brokers expect prices to stay flat, the same number that expect prices to rise next year.

The results follow last week’s forecast from the Halifax that house prices will stay flat for the foreseeable future. 

Mark Harris, head of communications at Savills, said that while forecasts can differ from major lenders, the predictions are still worth considering to help the industry understand where the market is heading next year.

He said: “There are loads of industry professionals who get forecasts wrong, but their predictions are the best guess we have to work out what is going on. I prefer companies releasing house price forecasts every so often, rather than remaining discreet on the matter, because you don’t see the Monetary Policy Committee being discreet about interest rates every month.”

Harris has predicted that the market will remain subdued next year, with very little change in house prices.

He said: “Our wider market forecast for next year indicates that the market will fall between 1% and 4.5% in 2011. However, I think that the long term outlook is positive and house prices will be back on track in five years time.”

This week’s poll question looks at higher student fees, and asks whether trebling university tuition fees will kill off the next generation of first-time buyers.

Have your say in the poll here

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