Price growth to stabilise next year

House price growth will become more stable in 2008 following a period of uncertainty, it has been suggested.

The National Association of Residential Agents (NAEA) has said that while it believes consumer confidence will be buoyed by interest rate falls, it expects growth to remain flat but steady as a result of "underlying strengths" such as a lack of supply.

Allied Surveyors, meanwhile, has said that it expects prices to rise by between one and two per cent next year, though it expects some properties to be more severely effected than others.

"We expect poorer housing stock and former local authority housing to be the most vulnerable," said Allied Surveyors chief executive Robert Bryant-Pearson.

"Whilst some lenders are predicting little or no overall change in house prices for 2008, this masks the fact that there will be certain sectors that will see a decline whilst others such as well located family homes in the middle market will continue to enjoy healthy demand," Mr Bryant-Pearson added.

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