"During 2012, house prices were broadly flat and we expect this subdued trend to continue"
- Blerina Uruci, an economist at Barclays Plc
Home prices in the U.K. advanced for the second month in a row in December, although they are likely to remain broadly flat in 2013, according to Halifax. The report showed that values gained 1.3% from the previous month to an average 163,845 pounds ($262,900). The monthly price gain in the previous month was revised to 1.6% from a previous estimate of 1%. From a year earlier, values surged 2.6% last month. Despite the fact the U.K. economy emerged from a recession in the third quarter, the outlook remains uncertain and constrains property demand.
"During 2012, house prices were broadly flat and we expect this subdued trend to continue," said Blerina Uruci, an economist at Barclays Plc in London. "However, we forecast a gradual recovery to emerge toward the second half supported by improving economic conditions, loose monetary policy and restricted supply. We also expect the BOE's Funding for Lending Scheme to provide some support to prices, albeit modest."
"There was evidence of a firming in the housing market in the final few months of 2012," said Martin Ellis, a Halifax economist. "We expect continuing broad stability in house prices nationally in 2013 with prices likely to end the year at levels close to where they begin."
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