First-time Buyers
House price inflation set to be stronger than predicted in 2007
House prices will rise at a rate higher than expected in 2007, according to Halifax, reflecting stronger growth in the first half of the year.
The bank has revised its forecast for house price growth in 2007 up from 4% to 6%.
An increase of 6% would still represent one of the smallest yearly increases since 1995 and is well under the long term average of 8% annual growth recorded since 1983.
Martin Ellis, chief economist at HBOS, said: “While house price growth was stronger than expected during the early months of 2007, there are now more signs that the market is slowing. We expect this trend to continue.
“House price inflation should ease over the second half of the year.”
The gap between house prices in the north and south is set to widen by £14,500 this year to almost £105,000.