UK house prices fell 1.3% in December 2010

Our solicitors comment on the BBC article "UK house prices fell 1.3% in December, Halifax says"

The article comes as no surprise as the last 2 or 3 months have seen pressure on prices. Clients of ours who sold in the late summer, only to lose their buyers and to re sell in November and December are having to take a reduced offer to re sell. Agents are desperate to keep buyers on board where matters have stagnated telling our sellers “you will not achieve this price in the current climate and for the foreseeable future”. Gazzundering, where buyers come in at the last minute requesting a price reduction for no reason other than the market suggests a reduction in value, is common place but does not seem to receive the press coverage expressing the out rage that accompanies the opposite, gazumping, when a seller ups the price at the last minute. Interestingly gazundering is seen as fair game but gazzumping as abhorrent.

There are no indicators as yet that the market is going to pick up at all from a price perspective in the coming 12 months and if anything is going to continue to slide downwards. This is positive from the point of view of first time buyers and those moving up market and so does not deserve the negative press that a sliding market receives. The negative press is generally generated by those having a vested interest in the market flying away upwards, estate agents and mortgage lenders.

Stability and volume is what most people in the interest would like to see.

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