Regeneration 'hotspots' to see strongest price growth

Home buyers looking for their new purchase to rise in value in the face of a slowing housing market should turn to regeneration areas for the best results in 2008, according to Spicerhaart Financial Services.

The firm has predicted that prices across the UK will rise by two per cent next year, but added that regional variations will apply and pointed to regeneration areas as the most likely success stories.

Spicerhaart operations director Steve Cox added that he expected price growth to return to higher levels the year after.

"The credit crunch does seem set to continue into 2008. This will produce a subdued environment characterised by low average price growth of around two per cent although some areas, such as regeneration hotspots, will prove more buoyant," Mr Cox asserted.

"As affordability constraints are eased and demand continues to outstrip supply, the long term future is set to be bright and we expect the housing market to return to its previously higher levels by 2009," he added.

Annual house price inflation current stands at 6.9 per cent, according to the latest index from Nationwide.

Finance your build or renovation with one of BuildStore's unique finance packages

© Adfero Ltd