Assetz confident over house price growth

Property advisory firm Assetz has said that predictions that house price growth in 2008 will amount to just one per cent are inaccurate given the expected market conditions.

The estimate, published yesterday by the Council of Mortgage Lenders (CML), does not give sufficient consideration to the combination of lower interest rates and fewer sellers coming to market, according to Assetz.

However, the firm did acknowledge that the increase in repossessions as predicted by the CML was seemingly "inevitable" as a result of the credit crunch.

"To suggest that house prices will rise just one per cent in 2008 represents an overly cautious approach from the CML," said Stuart Law, chief executive of Assetz.

"With an anticipated period of lower interest rates and the credit crunch now receding, I would predict a more realistic house price increase of five per cent in 2008, given the continuing supply/demand imbalance," Mr Law added.

The Ernst & Young Item Club also recently forecast that the housing market would remain stable over the course of 2008.

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