Charcol finds path through property market confusion

Mortgage advisor Charcol has offered an explanation to the seemingly different predictions from major mortgage lenders as to whether house prices will rise or fall next month.

Nationwide has said it believes house prices will rise by two per cent next year, but Halifax has said it thinks house prices instead drop two per cent.

Charcol senior manager Ray Boulger explained that although the two mortgage lenders have differing expectations for the housing market in 2005, a four per cent difference in forecasts is not significant.

"What is important is that we all agree on the broad direction of the housing market, namely no crash but a period of relative stability," he said.

Charcol itself believes house prices will rise four per cent next year.

"Confidence will return when enough people recognise not only that interest rates have peaked, but that 2005 will see lower rates," Mr Boulger added.

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