The normal price of a house in Britain cold top 200,000 pounds for the first time next year. It was predicted that there would be a year of stability and realistic pricing ahead, with prices rising by 4 per cent. A growth of 2 per cent would be sufficient to push the amount paid for an average home over the 200,000 pounds barrier.

The average asking rate in the middle of December was 196,181 pounds, which is smaller by 0.8 per cent on the figure at the beginning of November but up 3.4 per cent on the similar time the previous year. In the north of the country, the asking prices were down by 5 per cent during the month and up by just 1.2 per cent year-on-year. Estate agents had reported a decreasing number of unsold properties with numbers falling from 69 to 65 per branch.  As the sellers have adjusted to the downward of price, the sales had picked up. This is anticipated to carry on into next year, but there’re some problems.

The problem is especially among first-time buyers, as they would cap the increase in the price at the level of wage inflation in the near future.  Miles Shipside, the commercial director of the website said that the government is planning to provide a long-term strategy to the residential property market by enhancing house building and helping first-time buyers in keeping annual price rises to single figures. He said that the ever-rising pro-active policy of the government would be of ongoing interest to both existing and potential homeowners, as well as the industry.  Shipside said that they all are waiting with interest for the start of real estate investment trusts, shared equity products, and home information packs.  The price inflation prediction for next year is possibly a little higher than those of other market commentators. 

The Nationwide building society said that it thought that the prices would remain as they are or increase by up to 3 per cent. On the contrary, the Council of Mortgage Lenders forecasted an increase of 2 per cent.  The latest issue of the government’s house price index was issued today. The figures of the other commentators were ahead in comparison with the statistics from the Deputy Prime Minister’s office (ODPM). The ODPM said that the annual price inflation was low in all the areas of Britain except Wales. In England, it fell from 2.5 per cent in September to less than 1.5 per cent in October. In Northern Ireland also there was a dip in the prices. Over a similar time, year-on-year price growth in Wales jumped from 7.3% to 9.8%. The average price in the country remained higher when compared to other home nations, despite the fact that the homes in England experienced the least growth.

The average price of a house was 186,103 pounds all over Britain, a little lower than the 186,755 pounds for September.  Howard Archer said that the statistics were a suggestion that prices were same despite healthier housing market activity in recent months.  He said that they expected to see an extended period of subdued house prices.