Property price outlook will remain varied

Those considering taking the first step on the property ladder and finding the best mortgage rates have been advised that the outlook remains mixed.

According to MyMortgageDirect, house price growth will depend almost entirely on what part of the country people live in, as some will see increases, while others are more likely to see stagnation or even falls in value.

The comments follow research from Nationwide which revealed that house prices increased by 0.4 per cent in October 2011 and that the price of a typical home in October is 0.8 per cent higher than one year ago, suggesting that overall prices are about static.

It also revealed that areas of 'Urban Prosperity' have seen a slight fall in prices and, as these regions are populated by well-educated professionals, this could suggest that there are fewer first time buyers.

However, the areas thought to be inhabited by 'Wealthy Achievers' has seen a marked increase, with properties rising in value by three per cent since 2008.

Catherine Hearnden, director at MyMortgageDirect, said: "It seems to be mixed and I think [property price trends] will depend upon what part of the country you're in and what the property is. I really don't think that anybody can predict it.

"Usually they say that if house prices level off in London, then everywhere else will follow. I think it is wise to look at London as a guide to what is going to happen. A lot of that will depend on interest rates and jobs," she said.

However, she added that she does not believe that the unpredictable outlook is preventing people from looking for the best mortgage rates and getting on the property ladder.

This is due to the high affordability of property at the moment, which Ms Hearnden claims will continue for some time.

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2011-11-08 13:20:43 © Moneyextra.com