Martin Ellis House Quotations

The annual percentage increase in house prices nationally in 2005 was the smallest for 10 years.

The weakening labor market, the continuing high level of house prices in relation to earnings and pressure on householders' finances from the recent hikes in utility and council tax bills are expected to curb demand in the coming months, therefore preventing a sustained acceleration in house price inflation.

The continuing high level of house prices in relation to earnings will curb the ability of many potential first-time buyers to enter the market.

House prices fell slightly in January for the first time since May...Despite this fall, prices have increased by 1.6% over the past three months.

The easing in economic growth over the past year, together with a ratio of house price to average earnings that remains historically high, is expected to curb housing demand, and therefore prevent a renewed surge in house prices.

The UK housing market is set for a period of broad stability, with house prices forecast to rise by 3%, broadly in line with the predicted rise in retail price inflation.

This pickup in monthly house-price inflation is consistent with the continuing upward trend in market activity in recent months and the previous pattern of house price movements when the Bank of England begins to reduce interest rates.

We expect this trend to continue during 2006 as house prices rise at a slower pace than earnings, therefore making it a little easier for first-time buyers to enter the market.