Assetz says 2006’s seasonal slowdown in the housing market was minimal despite rising interest rates.
Its figures show the average rate of growth in December was 9.8% annually, up from 9.6% in November.
Christmas 2006 saw a minimal drop in the price of the average UK home of just 282. The annual rate of growth continued to climb, albeit slower than during previous months.
Stuart Law, managing director of Assetz, says: This years seasonal slowdown has been minimal despite rising interest rates.
“A shortage of supply will ensure that upwards pressure on prices continues, and this will only ease if the Barker review is successful in delivering a dramatic increase in new homes, which is unlikely to happen in the short-term.
As house prices climb, younger people trying to get onto the housing ladder will become completely divided into two groups – those with parental help who can therefore afford to buy their first property, and those without parental assistance who have no choice but to continue renting or living at home.
This, along with continued high levels of immigration and the rising number of households in the UK will drive high demand for rental properties, forcing rents to rise as borrowing becomes more expensive for investors.