Investment Property News - Bueno Investments Limited

The average house price will rise by 1% next year, a property group has
predicted.

With high transaction costs, a weak outlook for prices and continued
uncertainty among vendors, Hometrack warned there could be a major lack of
housing being put on the market at the beginning of 2008.

But the group's director of research Richard Donnell said the shortfall
could help to support prices and lead to greater price volatility in those
markets where there is the greatest lack of supply.

He said: "Overall we expect average prices to rise by just 1% over 2008 with
sales volumes projected to be down 17%."

It comes as the group claimed house prices suffered their biggest monthly
drop (0.3%) since January 2005 in December as confidence in the market
suffered " a major reversal" and the average time to sell a house rose to
8.3 weeks - the longest since the group began surveying in 2001.

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http://www.buenoinvestments.com/uk_property_investment.php (UK property)

http://www.hometrack.co.uk/ (Hometrack)