Nationwide house price forecast given

www.moneynews.co.uk > Housing market > Nationwide house price forecast given

Nationwide house price forecast given

Fri 16th Nov 2007

Nationwide has delivered its house price forecast for 2008, predicting that property price inflation will fall within the next year.

Fionnuala Earley, chief economist at Nationwide, said that although 2007 has been a "strong year" in the housing market, this momentum "is fading".

"We forecast house price growth of five to eight per cent in December last year and with two months left to go it looks like the middle to upper end of this range will be achieved," she remarked.

"That being said, momentum is now fading and a number of factors suggest that house price inflation will drop from its current rate of 9.7 per cent to zero per cent by this time next year."

She explained that the reasons behind "this more subdued outlook" include a slowing economy, stretched affordability for first-time buyers and fallout from the credit crunch.

Recently, the Royal Institution of Chartered Surveyors revealed that house prices in the UK had decreased to the lowest level in the past two years.

Related News : Housing market
	Nationwide housing market report 'shows little progress'
	Nationwide housing market report suggests people value rail proximity
	Halifax housing market study 'shows slowdown in price growth'
	Positive news for 'nearly all' UK regions, according to Nationwide housing market document
	Nationwide housing market research 'shows stable picture'
	Firstrung: Abolition of Hips 'has had no impact on housing market'
	CIH: Parents question children's ability to take out a mortgage
	Rightmove: UK house price growth slowing down
	Halifax highlights popularity of coastal properties
	Santander claims HIPs were 'headache' in the housing market

Related News : Nationwide
	Nationwide launches new credit card reward scheme
	ICB report recommends easier current account switching
	Mortgages are cheaper than two years ago, claims study
	Students fail to take out insurance 'due to apathy'
	Demand for fixed rate mortgages 'increases in economic uncertainty'
	Nationwide reduces rates on five-year fixed mortgages
	Intermediary mortgage lending 'increases for second quarter'
	Nationwide improves mortgage products for intermediaries
	Nationwide reduces fixed mortgage rates
	NLA survey reveals landlords jittery over possible rate increases