"The smallest December fall since 2006 indicates that the housing market is in on track to build further on 2013's momentum"
- Miles Shipside, Rightmove's director and housing market analyst
The Pound appreciated for the first time in four days against the U.S. Dollar, as an industry report showed Britain's home prices fell for a second straight month in December, providing some relief on the government and decreasing risk of a growing housing bubble. The nation's leading property consultant Rightmove said the average asking prices dropped across all the regions including London. The overall gauge of property prices sank 1.9%, the pace which is in line with the historical pattern ahead of Christmas, although the decline was the smallest since 2006, supporting the case of a broadening recovery. On a yearly basis, however, prices remained 5.4% higher than at the end of 2012.
In contrast, the company expects prices to rocket next year by as much as 8%, unless more property is listed on the market. This year, the number of new listing rose by 2%, versus a 13% jump in the number of transactions. A sharp increase in consumer confidence as well as constantly rising number of approved mortgage loans, forced Rightmove to say the number of transactions will propel by 10% in 2014. The recent comments from the central bank, hints on the upcoming rate hikes as well as diminishing level of uncertainty have all helped the market to move on at a stronger pace.
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