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House prices are starting to stabilise and the jobs market is improving according to two forward-looking surveys, offering glimmers of hope for the UK economy even as it heads towards a possible triple-dip recession.
The monthly snapshot of the property market from the Royal Institution of Chartered Surveyors suggested house prices remained broadly flat in November, while the number of sales continues to edge up. The body representing estate agents found a balance of 9% of surveyors reported falling house prices in November.
RICS said: "While slightly up on October's reading [7%], this still suggests that the market is now beginning to stabilise." London was once again the only part of the country where prices rose, with a balance of 40% of surveyors in the capital reporting an increase.
The improved outlook was, however, country-wide with a growing number of Britons showing interest in buying a new home in most parts of the UK. Looking ahead, surveyors are optimistic the number of sales should continue to grow gradually over the coming three months, but prices are expected to remain flat.
Peter Bolton King, global residential director at RICS, said: "There is certainly some optimism creeping back into the housing market, and it is encouraging to see an increase in potential buyers across parts of the country where the market has particularly suffered in recent years."
He welcomed the announcement in last week's autumn statement of funding to unlock large sites for house building and said the Funding for Lending scheme was starting to bear fruit. "However, the macroeconomic picture continues to weigh heavy on the market and continues prevent any really significant boost in activity," he added.
At the same time, recruitment company Manpower said the UK jobs outlook for the first three months of 2013 is at its best since before the recession. A balance of 6% of employers across the UK are looking to take on staff in the first quarter of the new year.
ManpowerGroup UK's managing director, Mark Cahill, said: "This time last year we were on the edge of a bleak midwinter, but despite the double-dip recession, 2012 ended up as a period where employers decided to head back tentatively into the jobs market. As we head into the new year, the remarkable resilience of the UK labour market looks set to continue."
