Slow housing growth predicted for 2006

A small early renewal in price rises - followed by a period of stagnation for the rest of the year - appears to be the sum prediction for the housing market in 2006.

The Centre for Economics and Business Research (CEBR) has predicted an overall growth of 4.4% for the UK housing market, citing demand as still above supply.

This falls roughly in line with mortgage lenders, who are generally predicting a rise over 2006 of less than 5%.

However, Capital Economics remains sceptical, expecting small falls in the housing market by the end of 2006.

One thing CEBR and CE analysts agree on, though, is that 2007 is already looking a tough year, with economic uncertainties likely to significantly impact the housing market.