The average prices of a home in the U.K. increased for the first time in seven months during December to end the year nearly unchanged, which is an encouraging sign for economists looking to 2011, according to The Daily Telegraph. Nationwide Building Society reported that House prices gained 0.4% in December to erase the 0.3% lost in November and meant that growth in home prices in 2010 was “essentially flat,” adding only £660 over the last 12 months.
The chief economist at Nationwide, Martin Gahbauer cautioned that despite the gain “house prices have fallen in four out of the last six months and it would be premature to suggest that the recent downward trend has been broken.” The group also warned that although the downtrend is “very modest,” there is not likely to be a strong recovery in 2011. Meanwhile, Financial Times adds that a separate report from the Royal Institution of Chartered Surveyors forecasts for a 2% decline in home prices in 2011, and a 4% drop in 2012, although other groups are less pessimistic.
Click here to read the story on December home prices from The Daily Telegraph.
Click here for coverage of the 2011 forecast from Financial Times.