Articles > Green Shoots?

This is a term that is being bandied around more and more frequently as of late. But is a recovery in the housing market imminent?

The Halifax recorded a price rise of 1.3% in January, while the Nationwide recorded a .9% increase in March. 

Both companies have played down the rises. Fionnuala Earley, Nationwide's Chief Economist, states that “while the rise in prices in March is welcome, it is far too soon to see this as evidence that the trough of the market has been reached”.

While two blips are not enough to warrant stating that we are currently beginning a recovery in the housing market, it may indicate that we are in a state of flux and that a recovery may be imminent. 

Stuart Law, Chief Executive of property investment group Assetz, states “The 'price bounce' recorded by Nationwide in March is another example of the erratic fluctuations we are currently seeing across many of the UK's major house price indices, usually seen at a turning point of the market. All indicators suggest that we are now closing in on the bottom for house prices, and murmurings of a recovery are justified”.

Another indicator we have experienced anecdotally here at Money4uMortgage.com is that more frequently, surveyors are valuing properties at the asking price, while even a couple months ago, properties were regularly being marked down. 

There are some exceptions. Some lenders use automated desktop valuations to assess property value. These still seem to be lagging behind, but should catch up with ‘human’ valuations over the coming months.

Late summer to early autumn should see the house prices bottomed out. Stuart Law asserts “I expect to see monthly price rises across the board after the summer.”