5 Dec

House price growth to regain pace in 2009

House price growth to regain pace in 2009

House price growth is set to be subdued in 2008 but will return to more robust health the following year, it has been claimed.

According to projections from Spicerhaart Financial Services house prices will rise an average of two per cent during 2007, despite the fact that the credit crunch will continue to impact on the economy.

Steve Cox, operations director of Spicerhaart, said: "The credit crunch does seem set to continue into 2008. This will produce a subdued environment characterised by low average price growth of around two per cent, although some areas, such as regeneration hotpots, will prove more buoyant."

However, the ever present disparity between demand and supply in the UK housing market will mitigate against any further slowing of house prices, as will projected interest rate cuts, he added.

"As affordability constraints are eased and demand continues to outstrip supply, the long term future is set to be bright and we expect the housing market to return to its previously higher levels by 2009," said Mr Cox.
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