UK House Prices Might Fall by 3.1% in 2011

According to the Office of Budget Responsibility, house prices in Great Britain might fall by 3.1% in 2011. This is almost twice as much as forecasted by the organisation some time earlier.

Even though the predictions for the years 2012-2015 are more positive (rises of 1.1%, 3.7% and 4.3% accordingly), the figures are still lower than expected in the beginning of 2010.

Commenting on the forecast, Mr. Newnes of LSL Estatу Agency said that although the increases in UK house prices will certainly be great news, they will be of no surprise to British consumers. He highlighted that "this has led demand in the property market to remain relatively resolute, with prices contained not by a sense of austerity among buyers, but by continuing caution from lenders. The ratio of buyers to sellers has fallen for most of 2010, but this is largely a result of more properties coming onto the market as the number of registered buyers has held up well."

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