Property owners and sellers after many months of bad news were given some encouraging news at the beginning of February, when on Thursday 5th February the Halifax released their latest research reporting that house prices had risen in January by 1.9%.

This news came after a year of monthly declines and showed the largest monthly increase in property values since January 2007.

Earlier in January shortly after RIC’s released their latest report which talked of improved client activity, the Housing Minister Margaret Beckett came under criticism when she advised first time buyers that they should start researching their options now ahead of a “mad rush” when the economy pick ups. She also commented on an “upturn” in the property market and that the Government was already worrying about the next housing boom.

In response Richard McGuire of RBC Capital Markets said “the unexpected pick up in house prices reported, looks to be a temporary aberration to an otherwise ongoing weakening trend. With the rapid slackening of the labour market both set to weigh on housing demand and to further dampen supply as lenders fret over a concomitant rise in default risk, the outlook for the sector remains poor”.

In support of Mr McGuires comments and in contrast, to the Halifax research the Nationwide released their latest research which showed house prices had actually fallen in January by 1.3%.

These findings are more in line with the general industry view that prices will continue to fall up to 20% between now and December 2009.

At Elite Property Search within the prime UK country house market we have been experiencing in some cases significant price drops particularly from houses that have been available for over 12 months. “We consider that this is less of a reduction in value but more of a realignment of real prices”. Tim Sharp Director at Elite said “A year ago property owners, particularly with country houses for sale, were bringing their property to market and prices were being somewhat stretched. As demand from buyers has reduced and those still in the market becoming more cautious, sellers are becoming more realistic with their asking prices”.

Although the industry, in general, expects prices to continue to fall, the general view is that for the best quality country homes after the recent alignment price levels will now hold.

However, in contrast to this view and even in these times where prices at best seem to be remaining static, a report in The Sunday Times Home edition on the 1st February tells of Simon James the owner of Gifford Hall, a William and Mary house set in four acres in Broughton Gifford, Wiltshire as being one vendor who is actually increasing his asking price this year. “It’s about demand” - he says - “This year, we think it is a realistic price with interest rates falling the serious buyers are coming “.

However, Tim Sharp Elite commented “there will always be anomalies in any market place and until offers are made and the property sells, the real value and worth will not be truly known.

For further information contact Elite Property Search on +44 01202 766566