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11 Mar 08 - UK House Prices 'Jumped 8% In 2007'
House prices in the UK rose by 8% last year, making it
the best performing property market out of all the major
European economies, a study shows.
The Royal Institution of Chartered Surveyors said the sector
was the sixth strongest in Europe last year, despite rising
interest rates and problems surrounding the credit crunch.
Poland saw the highest price rises overall at 28%, although
Rics warned there are now high levels of oversupply as foreign
investors look to exit the market.
The study also found Ireland had the worst performing housing
market during the year, with prices in the country falling
by 7%.
Report author Professor Michael Ball said: "The often
repeated dilemma currently facing monetary authorities is
that slowing economies - and housing markets - need lower
interest rates, but higher inflation is against them. How
Europe's housing markets fare in 2008 depends on how that
tug-of-war develops.
"There are prospects for some house price falls during
2008 but the scale of any housing market downturn is likely
to be far less than the last downturn in the early 1990s.
"The UK housing market looks much better placed than
many others in Europe because of the greater interest rate
flexibility."
News items supplied by SelectNews, produced by PA Business,
part of the group that owns The Press Association, the UK's
national news agency. Copyright (c) PA Business 2007.
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