House price growth falls slightly

Annual house price growth fell to 6.4 per cent in December, according to the latest Assetz House Price Watch.

That is down on the 7.9 per cent figure recorded in November and the 10.3 per cent growth seen in December 2006.

However, Assetz was quick to point out that it is not all doom and gloom, forecasting that annual growth will reach five per cent in 2008 and predicting a good year for first-time buyers and buy-to-let investors.

"It is difficult to see anything other than another successful year ahead for UK buy-to-let investors in 2008, who are positioned to benefit as the reducing number of homebuyers offers the potential for excellent returns from increased rental demand, and as the Bank of England reduces mortgage rates," said Stuart Lawchief executive of the firm.

"Despite recent negativity across the market, the current climate poses an excellent opportunity for first-time buyers who should strike while the iron is hot and take advantage of some nervy moves from developers and vendors looking to sell quickly, with reduced prices and tempting buyer incentives currently available," he continued.

Related Articles