18 Jan

Surveyors dismiss fears of a crash

Surveyors dismiss fears of a crash

Fears of a property crash have been dismissed by one o the UK's biggest surveying firms which said house prices would grow by three per cent in 2008.

CB Richard Ellis (CBRE) said speculation over an imminent price crash was misplaced and the property market would ride the storm, with the London market rising by as much as six per cent.

"Don't panic, it's a slowdown, not a crash," said Jennet Siebrits, head of residential research at CBRE.

"After such a prolonged period of rapid house price growth, the conjecture of a housing market crash comes as no surprise - the UK housing market has traditionally been cyclical, characterised by peaks and troughs.

"However, despite a clear weakening, we do not believe a crash is likely."

To further strengthen the housing market many economists are calling on the Bank of England's Monetary Policy Committee to cut headline interest rates in February after they were held at 5.5 per cent this month.

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