Housing market growth slows in 2007

The housing market's rate of growth slowed last year, but analysts have warned that this is no cause for concern.

Annualised growth stood at 8.3 per cent for the 12 months prior to November 2007 – down from 9.9 per cent in October.

This brought the average price of a home down from £213,936 in November to £214,893 in October.

While end of year growth stood at a 14-month low, average house prices still remained relatively strong.

Meanwhile, the buy-to-let sector remained buoyant over the period, with rents rising by as much as ten per cent in many regions.

London rents rose 19.3 per cent during the course of 2007, figures from Rics, Arla and Paragon revealed.

Stuart Law, chief executive of Assetz, said: "While there has been much suggestion of a problematic era for the property market, there are many more positive signs for the year ahead, with latest buy-to-let figures outweighing any negative outlook, as well as reflecting a hugely successful year for the property investor in 2007.

"On balance, the UK buy-to-let market is just about the strongest in the world and investors can look back on a successful 2007 with surveys showing excellent returns across the board."

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