Putting money on the housing market

Published on Friday 28 March 2008 20:27

BETTING exchange Cantor Spreadfair said there has been a shift in house-price sentiment over the last few weeks. Despite a melt-down in the majority of world markets, a higher level of activity on the betting exchange has seen prices for the housing market rise.

The market witnessed an all-time low in December 2007, but seemed to be bouncing back with clients doubting a housing crash would occur.

In early January, Halifax published its figures for an average UK house at 197,163, and Spreadfair clients were predicting this to decrease to 181,000 by the end of 2008.

In the last month, clients have been less bearish and see the average house price in the UK to be valued at 187,000 in December 2008 – 6,000 higher than their estimate two months ago. The betting exchange said that, on 15 September 2007 – one day after the run on Northern Rock – it saw the anticipated average house price drop to 185,000, before witnessing a further record low of 180,000 in December 2007. But predictions have recovered since, and despite industry bodies reporting declines in house prices, Spreadfair hasn't seen the signs from their clients that the UK is on the brink of another housing crash.