"During 2012, house prices were broadly flat and we expect this subdued trend to continue"
- Blerina Uruci, an economist at Barclays Plc
London home prices advanced most since February 2010 in January, indicating some improvement in the property market, according to Rightmove Plc. The report showed that values gained 3.6% from the previous month to an average 480,890 pounds ($764,000). Prices surged 9.7% from a year earlier, while nationally, prices expanded only by 0.2%. At the same time, the number of new properties hitting the London property market rose 29% compared to 2011. 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."
"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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