Price growth slows

House price growth slowed in 2007 and it looks as thought the property price bubble may have deflated slightly.

That is according to Moneyextra, which has revealed that house price growth fell to 1.85 per cent last year, compared to 7.44 per cent in 2006.

However, the firm believes that this may actually be a good thing for homeowners as it reduces the chances of getting into negative equity.

"This isn't necessarily bad news in the long term – the bubble had to burst at some point and provided borrowers can maintain their mortgage payments, which should get easier to do with interest rates expected to fall further this year, the dangers of negative equity should be avoided," said Robin Amlot, senior editor at Moneyextra.

According to the figures, the average property price in December 2007 was £227,529, compared to £223,310 in December 2006.

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