10
Dec
Zero per cent price growth next year, Halifax predicts
House price growth will slow to zero per cent next year, a leading
mortgage provider has predicted.
The market will dampen next year, as a result of the impact of
negative real earnings growth and the higher interest rates, the
Halifax predicts.
A full scale downturn is not on the cards, however, according to
the mortgage provider's report, although there will be a widening
in the property price gap between the North and South of the
country.
"Modest price growth is expected in southern England and Scotland
during 2008. Worsening affordability and weakening economies will
lead to a small fall in prices in northern England and the
Midlands," the Halifax report claimed.
"The UK economy is set to extend its record-breaking run of
continuous growth. The level of employment - a key driver of
housing demand - is expected to stay at record highs in
2008."
