Annual property prices start to slide
Average UK house prices have started to slide with annual growth at 6.6 per cent in August, data from Jones Lang LaSalle's (JLL) latest residential market forecast has shown.
Annual growth is down from the peak recorded by JLL in April of 10.5 per cent.
In July, the price of a property was £169,347. The figures are based on the index compiled by Oxford Economic Forecasts.
During the remainder of 2010, JLL expects a decline of 3.9 per cent on current price levels, reducing the value of the average UK property by £6,500.
Looking ahead to 2011, Jones Lang LaSalle expects increased supply and spending cutbacks to mean that price growth for the year will be flat, as the effect of public spending cuts and concerns around employment prospects pushes out the recovery timescale.
James Thomas, head of residential development and investment at JLL, said we are seeing definitive signs of a slowdown in capital growth across the UK housing market.
He said: "The simultaneous impact of weakening buyer demand and the increased level of property available for sale continues to place a downward pressure on pricing.
"While we are not expecting average house prices to fall dramatically, we are predicting a degree of pricing stagnation in the short term until the economic picture brightens.
"As a result, sellers will be forced to adopt more flexible pricing strategies over coming months as the balance of power once again shifts in favour of buyers."
Rob Bruce, head of residential research at JLL, said that demand is likely to be the buzz word across all regions in the UK in the short-term.
He said: " However, the longer term outlook for the UK housing market is more positive with significant growth anticipated by 2012 and pricing gravitating towards the long-term average of 7 per cent per annum."