House prices are likely to increase by 6% in 2007, so the Halifax predicts.
This is also supported by the other large mortgage lender, the Nationwide .
After five interest rate rises in less than a year both the Halifax and the Nationwide have today said they expect house price growth to slow between now and the end of 2007.
House price growth was strong in early 2007. However, there are signs that the property market is slowing down.
This trend is likely to continue. House price inflation may ease in the second half of 2007.
The Halifax forecasts that house prices at the end of 2007 will be 6% higher than at the start. This would make it one of the smallest increases in house prices since 1995, below the long-term average of 8% p.a.
The Nationwide also considers that house price inflation is going to slow down.
The Halifax highlights that 2007 mortgage rates and negative real earnings growth, as well as increasing food prices are combining to reduce the money households have available for housing, as hampering house price growth.
Nonetheless, a housing market crash is not predicted due to a healthy UK economy and high levels of employment .
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House Price Future
Fri, 20 Jul 2007
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