Economic indicators: Where next for house prices?
Where are Britain's house prices heading now?
Last updated: 21 May 2013
It's the question on everyone's lips. To find the answer, we've hunted down what we believe are the best leading indicators for Britain's housing market. And for now, they mostly suggest that prices are heading for further falls.
We watch five indicators, all of which have proved useful guides in the past. These include the RICS Housing Market Survey and data on both mortgage lending and mortgage approvals. Consumer confidence is another useful data point we keep an eye on.
You can read in detail what each indicator suggests for UK house prices using the links below. But, to summarise, surveyors remain gloomy, according to the RICS Housing Market Survey. Please note we now compare the RICS survey with the Halifax house price index. That gives 25 years of data. Both mortgage lending growth and mortgage approvals are broadly weakening, which also points to falling prices. Consumer confidence has dipped again. We're now including a long-term consumer confidence chart to give over 25 years of data. But higher inflation is unlikely to help much either.
1. What surveyors are saying about UK house prices
2. What Bank of England net mortgage lending growth says about house prices
3. What Bank of England mortgage approvals suggest about house prices
4. What consumer confidence means for house prices
5. Is property really a good hedge against inflation? Maybe not
And here's what house prices are currently doing, according to the latest indices: