Property market on the road to recovery

Posted: 21 Jan 2008 10:47:52 GMT

The average UK property lost value between December and January but this may actually benefit the market.

The average UK property lost value between December and January but this may actually benefit the market.

That is according to Rightmove, which has published its house price index, revealing that the average home fell in price by 0.8 per cent.

Rightmove claims that the minor correction, along with previous monthly falls, may be healthy for the market as first-time buyers (FTBs) can afford to invest.

"Some homebuyers are now able to find properties that have fallen into their affordability zone and are bagging what they see as bargains against previous prices," revealed Miles Shipside, commercial director at Rightmove.

"Some properties have had their prices dropped by ten per cent or more and are now within reach, satisfying some of the pent-up demand from previously disenfranchised buyers.

"Enough sellers seem to have dropped their prices to encourage potential buyers to look in larger numbers, suggesting we might see a more active market at this lower price level," he continued.

Rightmove also revealed that prices appeared to be recovering in early January and the firm remains unconcerned about the state of the market as a whole.

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