UK House Price Growth to slow in 2007

UK house price inflation will slow next year, but home owners in Scotland and Northern Ireland should enjoy above-average growth, according to Knight Frank Residential Research.

Average UK property prices will grow 6% during 2007, it said, down from an estimated 9% this year.

However, Scotland and Northern Ireland will experience the tail end of the recent housing market boom, with prices expected to grow by 9% and 10% respectively.

That will squeeze out pockets of “excess” affordability, and the property market in Scotland and Northern Ireland will under-perform the UK average from 2008, the forecast said.

At the same time, the “London effect” which has led to strong growth in the centre of the English Capital in 2006 – will spread to the majority of the south. (Reuters)