17 Aug

UK housing market to stand strong in the wake of financial unease

UK housing market to stand strong in the wake of financial unease

The UK housing market will remain separate from financial jitters experienced elsewhere in the global financial market, an estate agent has suggested.

A survey by Rightmove showed that asking prices set by new home sellers fell by 2.1 per cent during August although they are unlikely to be affected by any volatility in other UK markets and even further afield.

Miles Shipside, director of Rightmove, comments: "While the world's financial jitters are now playing havoc with stock markets and our future pensions, there are bound to be concerns about the impact on assets held as bricks and mortar.

"While the repeated shocks to the financial system have severely limited transaction numbers compared to pre-credit-crunch levels, the last four years have seen them stabilise."

Rightmove notes the number of new sellers coming in to the market remains low, at around 30 per cent below 2007 levels, broadly matched by the number of serious buyers. It also points out that with the base rate now expected to be unchanged until at least 2013, forced sales may drop and mortgage rates will stay low.

Figures released today indicated a rise in unemployment which, it is believed, may see repossession numbers start to rise.ADNFCR-1222-ID-800703000-ADNFCR

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