Property market to continue to flourish in '07 says report

Posted: 24 Oct 2006 11:13:29 GMT

House prices in the UK will grow six per cent over the course of 2007, a report from international property agents Knight Frank has predicted

House prices in the UK will grow six per cent over the course of 2007, a report from international property agents Knight Frank has predicted.

The figure is significantly lower than the estimated end-of-year growth rate of nine per cent by the end of 2006, noted the report.

Current London price growth will drag much of the south of England in its wake, but most of the growth will come from currently relatively undervalued Scottish and Northern Ireland property.

"The housing market, which staged an unexpectedly strong recovery in 2006, is expected to remain in robust health throughout 2007," said Liam Bailey of Knight Frank.

"We anticipate that the market will be particularly strong during the first half of 2007 with purchase activity standing at or above the ten year average until June."

House prices will nonetheless be restrained from their full potential by strained affordability. All predictions were based on rates rising to five per cent next month.

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