Hometrack revises house price inflation prediction

The Hometrack May survey finds that house prices have fallen by 0.1% for the last three months indicating the market is stabilising at current levels. Prices now start at £161,900, down from a peak of £167,700 in June 2004 and down 2.3% over the last twelve months. The continuing stagnation of the market has also led Hometrack to revise its estimation of house price inflation for 2005 from 3% to 0%. In contrast to the ongoing house price malaise, housing market transactions have seen a marked improvement. Sales agreed have risen by 7.6% in the last month and despite the increase in the ...