Nationwide house price forecast given by Finance News Bulletin

Published: 24/11/07

Nationwide has delivered its home price forecast for 2008, predicting that property cost inflation will fall within the next yearFionnuala Earley, chief economist at Nationwide, said that although 2007 has been a "physically powerful year" in the housing market, this momentum "is vanishing""We forecast house price growth of five to eight per cent in December last day and with two months left to go it looks similar to the middle to upper end of this variety will be achieved," she remarked"That being said, momentum is now vanishing and a number of factors suggest that home price inflation will drop from its current rate of 9

7 per cent to nothing per cent by this time next day"She explained that the reasons behind "this more subdued outlook" comprise a slowing economy, stretched affordability for first-time buyers and fallout from the credit crunchlately, the Royal organization of Chartered Surveyors revealed that house prices in the UK had decreased to the lowly level in the past

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