House Prices Forecast For the Last Quarter of 2011

What house pricing experts are now terming 'the big squeeze' of October 2011 is predicted to keep a lid on mortgage rates and house prices through to the last quarter as mortgage lenders cling on to recent growths in the first time buyer market.

With the market temporarily subdued in the face of low buyer confidence, the recently published Halifax house price index report showed a further 0.5% decrease for September in property values ranging between 160,000 and 165,000 pounds over the past 12 months.

Nationwide also showed similar results, demonstrating a 0.1% monthly rise but a 0.3% decrease on results for last year. The building society also suggests evidence of a future market stalemate which, despite sounding like a cry of dire portent, spells good news for first time buyers looking to buy a new home, who are currently experiencing an increase in bank and building society buyer initiatives backed by the government and local authorities.

Indeed, the current landscape for the potential buyer is proving to be robust, with some of the best mortgage deals since the end of 2008 now becoming available through a range of market stimulators, particularly low mortgage interest rates and higher loan-to-value returns.

A market stale mate will at least help keep the head of the housing market above water despite crises throughout the Eurozone which are currently stalling a still tentative economy.

Those buying a home and sellers alike are being advised by mortgage experts to take advantage of the wealth of advice and support currently available and to bear in mind huge regional disparities within the market before taking action. They must also bear in mind a silver lining of rising wages throughout the country, which could bring about more affordable homes without homeowners again falling into negative equity.

Commenting on stability of the options available to those looking to buy a house, housing economist Martin Ellis said 'greater uncertainty about economic and personal financial circumstances, together with pressure on householders' finances from weak earnings growth, higher inflation and increases in taxes, are likely to be constraining housing demand'.

However, Mr Ellis also added that despite these pressures, low mortgage interest rates and a rise in employment over the past year 'have been supporting the market, resulting in broad stability in both prices and activity. We expect little change over the remainder of this year.'