House prices to rise by £1,000 per month in 2007

House prices to rise by £1,000 per month in 2007

UK house price inflation is on track to grow at an average rate of £1,000 per property, per month, according to reports from the Centre for Economics and Business Research (CEBR).

CEBR experts maintain that house prices in the UK will increase notably this year, despite recent base rate increases.

According to a new CEBR report, strong demand and limited supply in many parts of the country will continue to fuel property price growth.

It is estimated that the average house price will increase by eight per cent to £193,000, up from £179,500.

"The underlying fundamentals of the housing market continue to support prices," explained John Ward, one of the report's authors.

"Even though interest rates may act as a dampener on the market people are spending considerably less of their incomes on mortgages than in the early 1990s."

Recent reports state that UK house prices are showing signs of cooling, with house price inflation having slowed in January to the lowest rate since May.