31 Oct

House price growth 'to continue in 2008'

House price growth 'to continue in 2008'

Contrary to projections from the Council of Mortgage Lenders (CML), UK property prices are set to rise in 2008, it has been claimed.

In a statement released this week, the CML predicted that house prices are set to dip by one per cent next year.

However, according to Assetz this is an "overly cautious" projection, and in fact prices are due to go up by five per cent.

Stuart Law, chief executive at Assetz, said: "With an anticipated period of lower interest rates and the credit crunch now receding, I would predict a more realistic house price increase of five per cent in 2008, given the continuing supply/demand imbalance.

"While I would agree with the CML that sales volumes are likely to fall next year, I do not expect this to have a significant impact on price. With fewer sellers than buyers expected in the market, this will in fact support prices, keeping them buoyant," he added.

Recent figures from the Land Registry showed that house prices rose 0.4 per cent in September.

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