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While a modest economic slowdown, rising bills and higher unemployment levels are likely to curb house price rises, a number of factors look set to make 2006 a seller's market

Looking ahead to the coming year, we expect modest house price growth, with low, single digit, growth likely to be the norm in the UK property market. UK house prices are forecast to rise by 3%, broadly in line with the predicted rise in retail price inflation. The annual rate of house price inflation is expected to increase during the first half of 2006, potentially reaching a peak of 7%-8% by the middle of the year as modest monthly rises in 2006 compare with broadly flat prices in the first six months of 2005. The annual rate is subsequently expected to fall as prices rise at a markedly...

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