Housing market "will slow gently"

Posted: 19 Oct 2007 12:19:17 GMT

The housing market will not crash but will instead see a "soft landing", it has been claimed.

The housing market will not crash but will instead see a "soft landing", it has been claimed.

A Treasury official said this week that despite fears homeowners could see a speedy decline in house prices, the market is expected to have a gentle slowdown instead.

The comments come despite a number of interest rate rises over the past few months and the global credit crunch which are expected to have a big impact on the market.

"We are forecasting they will slow down and we've got some evidence they are starting to slow down," the official said. "We're certainly not expecting a disorderly correction in the housing market."

"We've never been expecting a fall in house prices," he added.

Figures from the National Association of Estate Agents this week suggested that a slow down was certainly on its way, with figures from September showing that the number of buyers and sellers was down on the average for this time of year.

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