Prices rise in final quarter of 2007

The average UK property price in the final quarter of 2007 was 5.2 per cent higher than a year previous.

Halifax has published figures which reveal that the average house increased in value by £9,821.

Scotland saw the most impressive growth (13.1 per cent), followed by Northern Ireland (9.3 per cent) and the south-east (seven per cent).

Price falls were recorded quarter-on-quarter in some regions, with Greater London (-6.3 per cent) hit worst, followed by the south-east (-2.3 per cent) and the East Midlands (-2.3 per cent).

Commenting on the figures, Halifax chief economist Martin Ellis said that he does not expect the market to suffer a major correction in 2008.

"The slowdown in house price growth seen in the first three quarters of 2007 continued in the final three months of the year with prices slightly lower than in the preceding quarter," he commented.

"Sound economic fundamentals and lower interest rates will support house prices in 2008. The UK economy is expected to deliver its 65th successive quarter of GDP growth during the year, extending the longest running period of unbroken growth on record.

"The MPC is likely to follow up last month's cut by reducing the Bank Rate at least twice in 2008," added Mr Ellis.

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