'No major falls' in housing market

The Royal Institution of Chartered Surveyors (Rics) has said that while house prices will not see significant gains in 2008, they are also unlikely to fall during that period.

Rics senior economist David Stubbs has said that the performance of the market in recent months has surprised analysts, and added that fundamentals point to further resilience.

This will likely mean that sellers remain in control of the market next year, Mr Stubbs added.

"We will avoid major falls because we don’t see a lot of people being forced to sell their home due to high interest rates or due to an economic slowdown, which is traditionally how you get really severe weakness in the housing market," the senior economist predicted.

"At the moment the supply side is actually holding up much better than most people would have imagined, and that’s actually keeping the market fairly tight, and should actually prevent sellers from having to give discounts to most buyers," he added.

The assertions follow similar predictions made by Monetary Policy Committee member Kate Barker next week.

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