With dwindling figures of the housing market in the United Kingdom last month, it may be a gloomy 2012 as far as the general housing industry is concerned. Even if is too early to conclude, the figures show a different turn. If the UK can stay away from recession, one can be hopeful of more stable housing rates and a sound housing market.

Although the price of houses increased yearly at an average of one percent, it still does not prove to be worthwhile considering the rise in inflation rate at 4.8% ending November of last year. Most properties in Britain that have gained considerable value in time have now given up their price gain, which can be traced back when the property drop ballooned two years ago, in March 2009.

The overwhelming inflation rate has affected what meager increase these properties have earned through the past months. In fact, it is startling to note that in Wales and England alone, where the Land Registry data has showed a decrease of 2 percent, apparently a notch higher than the 1 percent increase. This ratio is bleak in the sense that the increase has been doubled-up with the increase, something that the housing industry is blatantly faced with as the New Year unfolds.

London, on the other hand, has been exempt from the rampant price fall, although Northern Ireland has plummeted, the deepest at 8 percent. The house prices in the North West, the North and Scotland have also decreased although at a far smaller by far smaller margin.

“Next year “isn’t shaping up to be much better than 2011, for the UK economy or the housing market,” Robert Gardner, Nationwide’s chief economist, said, adding that prices would move sideways or modestly lower as a result of the UK economy struggling to gain.”

Even when the interest rates of houses are low, which tend to let homeowners cling on to these properties and avoid the need for a quick house sale, the major factor of the decrease in demand is primarily brought about by low salary and the weakening status of labor and employment, something that has significantly affected the struggle to keep house prices stable.