Insurance News Archive

Housing market to remain "robust" in 2007

"Robust" house price growth of between five and eight per cent is expected in 2007, according to Nationwide.

Fionnuala Earley, Nationwide's group economist, said that a buoyant economy, stable interest rates, and a continued shortage of housing supply would contribute to the trend.

According to the group, London is set to contribute to the strong growth, with ten per cent increases expected following a relatively quiet performance in 2006.

Ms Earley said that conditions next year mean: "We can expect to see a few months of double-digit annual house price inflation in the first half of the year.

"However, increasingly poor affordability and likely cutbacks at the Bank of Mum and Dad will cause the rate of house price growth to move back into single digits in the latter part of the year," she added.

14 Dec 2006