House prices set to increase 4% in 2008

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by Kay Murchie

SmartNewHomes.com, the property website, recently said new-build property has bucked the trend and increased 0.7% during October with Halifax, Hometrack and Rightmove, report property price falls across the country.

David Bexon of SmartNewHomes.com predicts that the average new UK property will increase between 2% and 4% during the next 12 months.

Mr Bexon added that after the slowing of the market over the last few years, homeowners may carry out home improvements and extend their homes. Building extensions or transforming rooms and garages will be ways that homeowners will increase the value of their homes, ready for when the market picks up again.

However, Mr Bexon said average prices could possibly fall in the capital. City bonuses are affected this year after the banking crisis so buyers in London will be extra cautious which could bring down the overall average new home price.

Mr Bexon believes that in the long-term, it is unlikely that there will be a correction in the housing market which contradicts many experts. Plans by the government to increase the number of homes to meet demand should help maintain stable price levels concluded Mr Bexon.