1% house price rise next year

Posted: 17 Dec 2007 12:02:51 GMT

The average property price in the UK is set to rise by one per cent in 2008.

The average property price in the UK is set to rise by one per cent in 2008.

That is according to Richard Donnell, director of research at Hometrack, who has revealed his forecast for the year ahead.

During an appearance on BBC Radio Four's 'Money Box' programme, Mr Donnell said that a lack of supply will support prices.

"We expect prices to be up by one per cent next year, and the volume of property sales to be down 16 per cent," he said.

"A lot of people simply don't need to move. They are unsure where interest rates are going, what is happening in the mortgage market.

"When the market slows you get a drop off in transaction levels, but that lack of supply is providing a support to prices, so overall prices are likely to rise one per cent next year," continued the director of research.

A number of experts have forecast that house price growth will sit at zero per cent in 2008.

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