Q&A: do you think house prices are going to rise next year?
This week, Warren Bright, Chief Executive of Propertyfinder answers this all important question for home owners:
The outlook for the property market for the coming year is much harder to call this year than last.
Our expectations of a strong 2006 came true in spades, although commodity prices pushed interest rates higher than we expected. These higher rates are now clouding the waters for 2007. Confidence in the housing market overall is strong, although outside London and the South East, beyond the reach of City cash, optimism is more subdued.
The latest Bank of England lending data predates the November rise in rates, but shows robust volumes of housing transactions and no slowdown in the growth of mortgage lending. We believe some moderation of this growth is now likely as higher borrowing costs tend to have a lagged effect on the market. The likelihood of a further rise in base rates in February looks finely balanced. If it does happen, the housing market will cool more rapidly. If rates are left unchanged, we expect price growth in 2007 to slow gently, with prices up on average 5.5% by year end.
Do you have a question for our estate agents and property experts? Please let us know below, or read our previous Q&As.
