Contrary to most 2008 forecasts, Jennet Siebrits, head of residential research for CB Richard Ellis (CBRE) Residential Research, said that CBRE expects house price growth in 2008.

Siebrits said: “We expect house price growth in the UK next year to be 4% as opposed to 7% this year. London will outperform the market, with growth rates at 6%. At CBRE, we are not predicting a crash and are more optimistic than other commentators. This is largely because the economic fundamentals remain sound. In addition, the market weakness will put off some sellers, people don’t like to sell when they think they are making a loss – whether that loss is perceived or actual.

“Significant and consecutive house price falls happen when home owners are forced to sell. With a benign economic backdrop we do not envisage that happening. As a result we expect a thin market in 2008 with lower levels of transactions. However, following a rather stagnant year, we expect the market to pick up again.”