Hopes rise as house prices start to turn a corner

Feb 6 2009 by Adrian Pearson, The Journal

ESTATE agents have claimed the North East housing market is slowly turning the corner as national figures show a slight rise in house prices.

Halifax yesterday revealed house prices have unexpectedly risen by 1.9% during January, ending 10 consecutive months of price falls.

Many in the housing industry have viewed the figure with a degree of caution, citing a survey by Nationwide last week which claimed house prices fell by 1.3% during January.

Some expect the national picture will continue to decline, especially in the South East, but estate agents selling houses across the North East believe the region may be among the first to recover.

Halifax North East manger Chris Stonoch last night said that while there was no regional breakdown of the housing figures, there was plenty of evidence “on the shop floor” to suggest the market had bottomed out.

He said: “There has been a noticeable upturn in applications and enquiries. We are seeing a lot more optimism and a large part of the upturn will come down to confidence.

“We have seen a marked fall. It has come down a long way but there are some good signs.

“Everyone seems to accept that 2009 will be another tough year for the property market – but it just feels like things are improving.

“We have started the year in a better position and hopefully that will continue.”

Sam Gibson, of Strutt & Parker , went further. He said the number of buyers registering with its Morpeth office in January was 127, compared with 38 in January 2008.

“During the same period, the number of appointments for buyers to view increased by a staggering 130%,” he said.

“Money is cheaper to borrow now than at any time in the Bank’s 315-year history, and there is real evidence that buyers are being encouraged back in to the market. There are currently some extremely attractive mortgage ‘deals’ on offer.”