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House prices to remain steady in 2010

House prices to remain steady in 2010

Category: Mortgages

Updated: 14/12/2009
First Published: 14/12/2009

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.
A spring upturn in the housing market but post election uncertainty means house prices will remain broadly unchanged next year, it has been predicted.

The latest data from Rightmove has revealed average asking prices dropped by almost £5K between November and December, the second month in a row to witness a decline.

The trend is predicted to continue into next month, but the property website believes there will then be a burst of activity in early spring, with a heightened level of transactions once again pushing asking prices higher.

However, with a General Election looming, it forecast that a more challenging period will subsequently be on the cards.

Although a shortage of new sellers and price rises in perceived better locations are expected to continue, recession hit areas are likely to see more forced sellers and price falls post-election.

"Time may well be of the essence as the election is likely to be a party pooper," said Miles Shipside, commercial director of Rightmove. "2009 turned out to be a good time to trade up, and we forecast the positive mood will continue into 2010 until the post-election hangover kicks in."

Last week the Chancellor refused the chance to extend the stamp duty holiday beyond the end of the year, a further blow to first time buyers still struggling to secure the mortgage deals they need to get on the housing ladder.

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