A price switching website has said that it expects house prices to continue to rise during 2007.

According to moneysupermarket.com, demand for housing is unlikely to slow, even in the face of a lack of affordable homes.

In addition, interest rates on mortgages are expected to rise to 5.5 per cent before falling back later in the year.

"House prices will continue to rise at a much higher rate than average salary - circa seven per cent," said Louise Cuming, head of mortgages at moneysupermarket.com.

"However, if the government does not continue with its drive to provide new and affordable housing stock, the ongoing lack of available reasonably priced housing could lead to overall stagnation of the housing market."

Many homeowners find that making home improvements can increase the value of the property.

Click here for a selection of windows and doors from Safestyle.

©

Author:  Joanne McCabe