Housing market levels out

The UK housing market remains steady

The housing market in England and Wales remained stable in December, according to thhe Royal Institution of Chartered Surveyors (RICS).

The report found that prices were still rising in many areas but at a "very gentle pace".

"Last year RICS predicted the housing market would head for a period of stability towards the end of the year, continuing into the early part of 2001, and the prediction looks set to be confirmed," said a spokesman.

The survey shows a marginal drop in the number of chartered surveyors reporting price rises over those reporting falls.

In December the proportion of surveyors reporting rises above those reporting falls was 21%, compared with 23% for November.

A year earlier 59% more surveyors reported price rises than price falls.

Unsurprisingly, surveyors expect future price growth to be below the rapid levels seen a year ago.

Muted confidence

Over the coming months, 32% of estate agents expect rises, 62% expect no significant change and only 7% expect prices to fall.

Sales in December matched this muted confidence, with the average number of sales rising to 28, up from 27 in November.

This compares with an average of 30 for December 1999.

House prices by region*

North: 27% (up 10%)

Yorkshire & Humberside: 40% (up 3%)

North West: 17% (down 9%)

East Midlands: 15% (down 1%)

West Midlands: 26% (up 14%)

East Anglia: 21% (down 6%)

South East: 21% (up 13%)

South West: 16% (same)

Wales: 33% (down 3%)

London: 29% (down 8%)

*Figures show net balance of surveyors reporting price increases
Source: RICS

Most chartered surveyors in the South East reported price rises, as did the regions in the North, Yorkshire and Humberside and the West Midlands.

The South West reported no change in prices, while Wales, the North West, the East Midlands, East Anglia and London reported falls.

Economists and mortgage lenders have predicted that house prices will rise between 4% and 6% in 2001. In 2000, prices rose by 5.7%, according to the Halifax Group.

The survey includes responses from more than 250 chartered surveyors.