Rics expects little change to prices in 08

House prices will remain largely unchanged over 2008 as a whole even if there is a softening of prices in the first half of the year, the Royal Institution of Chartered Surveyors (Rics) has said.

Rics' prediction is broadly in line with those made by the likes of Nationwide, and foresees that first time buyers trying to take advantage of softening prices will prop up the market next year.

However, the organisation also believes that repossessions will rise from 30,000 to 45,000 in 2008, equivalent to 123 per day.

"2008 will prove a difficult year for the housing market, but with falls likely in the base rate, the housing market should be provided with a stable platform," commented Simon Rubinsohn, chief economist at Rics.

"The effect of the credit crunch will dissipate slowly meaning that those seeking to obtain finance in the first half of 2008 may struggle," Mr Rubinsohn added.

The Council of Mortgage Lenders said in October that it believed house prices would rise by one per cent in 2008.

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