CML house price prediction 'overly cautious'

In its 2008 forecast, the CML predicted a dramatic fall in house price inflation, estimating annual growth of around 7% in 2007, dropping to 1% in 2008. However, Stewart Law, chief executive of property investment firm Assetz, says anticipation of lower interest rates and a receding credit crunch means house price growth will continue at a healthy rate of around 5%. Law says: “While I would agree with the CML that sales volumes are likely to fall next year, I do not expect this to have a significant impact on price. With fewer sellers than buyers expected in the market, this will in fac...