UK property market ''not crashing''

The UK property market is not destined for a crash, according to housing experts.

The Centre for Economics and Business Research (CEBR), an independent consultancy, says that the large rises in house prices may not continue so fluidly.

Douglas McWilliams, chief executive of CEBR, said: "The big gains in property have already been made and from now on property prices will fluctuate, but more in line with earnings inflation."

He said that the property market is adjusting to interest rates which now sit at six per cent as opposed to the 12 per cent rates seen in the 1980s.

Mr McWilliams added that adjusting to this change caused the house price rises and "we see this changing as time goes on".

Halifax bank also agreed that a housing price crash is unlikely.

They say that a lack of supply coupled with a healthy demand will support high prices for homes.


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