House price growth is set to remain firm next year, according to recently released data.

A report out this week from Nationwide indicates that property prices will climb by between five to eight per cent in 2007, slightly down on this year's ten per cent figure.

It is thought that demand will continue to outstrip supply during the coming 12 months as two recent interest rate hikes by the Bank of England's Monetary Policy Committee have little impact upon mortgage applications.

Fionnuala Earley, Nationwide's group economist, said: "Momentum gathered in 2006 will flow into the early part of 2007, and this will be supported by a buoyant economy, stable interest rates and a continuing shortage of housing supply.

"We can therefore expect to see a few months of double-digit annual house price inflation in the first half of the year."

However, she predicted that affordability issues would begin to make a dent in the growth figures during the second half of the year.

London is set to see prices grow by ten per cent next year, while the Midlands and the north of the country are likely to experience increases of only four per cent.

In an uncertain market, attention to detail, such as double glazing, can help maintain a home's saleability.

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Author:  Joanne McCabe