Halifax has said that due to lack of activity within the housing market, house price inflation has cooled. The group has predicted that by the end of the year, house prices will be back to the figure they entered 2010 at.
The report contradicts information released by Nationwide recently in which it was said that house prices have continued to drop and the falling market was causing a “perfect storm” for first-time buyers as well as those amid selling a house.
Housing economist at Halifax, Martin Ellis, told BBC News: “Prices are now at a very similar level to that at the end of last year. Activity has also been largely static since the start of the year. These developments suggest that the market is broadly stable, with house price inflation having cooled since last year, when supply shortages helped to push up prices.”
Not everyone has shared the positive outlook Halifax has taken on the health of the housing market for the future. Housing developer, Barratt Homes has said the improving conditions in the market are not helping financial earnings. They reported a loss of £33m this year and said that there was still a problem with housing shortage in the UK.
The latest Plimsoll Analysis, assessing the ability of Housebuilders to survive the next trading period, has issued a performance warning to 617 companies. If the market continues to stagnate or worse goes into decline again, what next for these struggling companies?