Prices ‘to rise by up to 4 percent’
SmartNewHomes.com has said that average house prices will rise by between two and four per cent next year, adding that interest rates will likely fall by 0.5 percentage points.
The firm’s 2008 predictions have also pointed to developer discounts as a route from which first-time buyers to get onto the UK Property ladder.
Sales and price growth in the apartment sub-sector may suffer, however, because of an expected oversupply of this type of home, the website added.
“Developers will continue to use incentives, so the New Year is going to be a better time for first time buyers, who will capitalise on flattened prices and extra incentives, combined with expected lower interest rates,” said SmartNewHomes.com managing director David Bexon.
“In the long term I expect prices to stabilise rather than rise dramatically as we have previously seen, particularly with the government’s aims to increase the number of homes to meet demand,” Mr Bexon added.
Nationwide, on the other hand, believes that house price growth will be flat in 2008.
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