10 Dec

Zero per cent price growth next year, Halifax predicts

Zero per cent price growth next year, Halifax predicts

House price growth will slow to zero per cent next year, a leading mortgage provider has predicted.

The market will dampen next year, as a result of the impact of negative real earnings growth and the higher interest rates, the Halifax predicts.

A full scale downturn is not on the cards, however, according to the mortgage provider's report, although there will be a widening in the property price gap between the North and South of the country.

"Modest price growth is expected in southern England and Scotland during 2008. Worsening affordability and weakening economies will lead to a small fall in prices in northern England and the Midlands," the Halifax report claimed.

"The UK economy is set to extend its record-breaking run of continuous growth. The level of employment - a key driver of housing demand - is expected to stay at record highs in 2008."

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