The latest housing report from Halifax has suggested that property prices will pick up again in 2008.

While acknowledging that the market has slowed down somewhat in the past two months - declining nearly one per cent since September - the bank has called such a downturn a mere 'glitch' in an otherwise favourable market.

Citing numerous recent reports by property analysts which suggest that the negative impact of the recent credit squeeze will be short-lived, it predicted that property prices in the South East will grow a healthy five per cent in 2008.

The bank's chief economist, Martin Ellis, noted in particular that even despite the turmoil of recent months, house prices still grew at a steady rate of 0.3 per cent in the third quarter.

"The UK economy is in a strong position," he insisted. "Sound market fundamentals including high levels of employment and a shortage in the number of properties for sale will continue to support house prices."

Nationwide estimates that the average house price has tripled in the last decade from £58,403 in 1997 to £172,065 today.

© Adfero Ltd

Author:  Joanne McCabe

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