Subscribe!2007 housing market to be “very steady”
Charles Smailes, the president of the National Association of Estate Agents (NAEA) has predicted that the housing market will be “very steady” this year, with no “horrendous price increases”.
Mr Smailes said that the market would be stable throughout the year, although areas with pronounced housing shortages could see a rise in property prices.
He said that price rises would be more prevalent in London and the south-east, where available housing is in short supply.
Mr Smailes added: “If you take the country as a whole, I think it will be a small level of possibly five per cent or less across the board, unless of course there are unknown economic factors which may come into play.”
However, he stressed that the NAEA is “certainly not expecting a crash market”.
Fionnuala Earley, economist at Nationwide, said that steady interest rates, a buoyant economy and lack of available housing will maintain house price momentum in the first few months of 2007.