House price crash not on the cards

Rumours of a housing market price crash should be taken with a pinch of salt, according to one expert.

The Telegraph has reported that CB Richard Ellis believes house price growth will actually hit three per cent in 2008.

It comes as a number of analysts forecast price falls or no movement at all.

Jennet Siebrits, head of residential research at CB Richard Ellis, told the newspaper that the UK market is supported by a number of fundamentals and those who predict doom and gloom have failed to take this into account.

"This is not a repeat of the 1990s crash, as housing equity and employment rates are at an all-time high and interest rates remain low," said Ms Siebrits.

"With the benign economic backdrop and unique nature of the housing market, we do not envisage forced sales and repossessions spiralling.

"Instead, we expect a think market in 2008 with lower levels of transactions," added the head of residential research.

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