House price growth remained stable in February after several months of successive falls, according to Assetz.
An aggregate of five major house price indices, compiled by Assetz, also showed annualised growth was at half the level seen a year ago.
Assetz’s index shows annualised price growth was stable at 5.4% in February 2008, meaning the average price of a home in the UK was £213,430, a monthly increase of £1,958.
Assetz claims the figures show the market is beginning to stabilise and the slowdown in annual house price growth may now be ending. The firm even claim a upturn in price growth may be witnessed in March.
On a monthly basis, prices grew by 0.7%, the first positive monthly increase since October 2007, which Assetz says is clear evidence that the downturn of late 2007 was merely a market correction rather than a crash.
However, the firm urged the Bank of England to reduce interest rates by 0.5% in April to alleviate the tightening of credit markets.
While remaining positive on the market outlook, Stuart Law, chief executive of Assetz, says: “I strongly suspect that many will be surprised by a return to house price growth sooner rather than later but the remaining risk to stability is the credit crunch, as the result of banks’ greed continues to unwind.
"This remains the greatest risk to the housing market and the economy as a whole at present.”
Law predicts annual growth for 2008 will stabilise at around 5% as demand continues to exceed supply in the UK market.
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