House prices tipped for 5% rise in 2007

Posted: 11 Dec 2006 11:39:58 GMT

The National Association of Estate Agents (NAEA) is predicting a steadier year for house prices in 2007, but with regional differences coming to the fore

The National Association of Estate Agents (NAEA) is predicting a steadier year for house prices in 2007, but with regional differences coming to the fore.

The NAEA said that there will be an average five per cent rise in house prices over 2007, but regional variation will be a key characteristic of the market as property supply continues to be an issue in many places.

The issue of property supply will be key to the market in the south-east where high prices and the high pace of activity, is distorting figures on a national level, the NAEA said.

However, this has masked flatter markets in the other areas of the UK.

Peter Bolton King, chief executive of the NAEA, said: "In what is likely to be a quieter year than 2006, we are expecting to see modest price rises and a continuing rise in consumer confidence.

"I firmly believe, however, that it is going to be increasingly difficult to make generalisations about the market as we see the gap between under-performing areas and those holding steady widen even further.

"While it may be a quieter year for prices, the housing market itself could be facing significant change with the proposed Hips [home information packs] legislation. This is creating huge uncertainty for the market and is a situation we will continue to be watching closely moving into next year."


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