House prices remain flat with market 'dogged by uncertainty'

House prices remained flat in the first month of 2012 meaning prices have not posted a month-on-month increase since June 2010, the latest data showed.

According to housing data firm Hometrack, figures for January 2012 showed a slow start to the year, with an extension of the seasonal downturn and weak consumer confidence.

The data showed that in January house prices remained unchanged, nationally, meaning prices have not risen month on month since June 2010.

The data also showed that the supply of homes for sale has contracted by 7% over the past six months - the largest contraction since 2009.

On a regional basis, southern England, excluding London, saw the biggest decline in demand over the last six months, but this has been from a high base, the data showed.

Richard Donnell, Hometrack director of research, said the survey revealed a market “dogged by uncertainty”.

“On a national basis house prices have not increased over the last 18 months - a theme carried over into January when prices were unchanged.

“A small rise in London offset falls in other regions. London looks set to buck the national trend again in 2012 thanks to overseas buyers providing a boost to process in London’s prime areas.

“Elsewhere demand remains constrained by the uncertain economic outlook. Some agents have also reported an increase in down-valuations as surveyors exercise growing caution.”