Whilst Halifax saw prices shoot up to 1.3 per cent in December, Rightmove.co.uk saw them fall by 3.2 per cent. All this conflicting data means that huge monthly disparities are emerging.
As a result, Chesterton has drawn up a 'poll of polls' to take into account each index's strengths and weaknesses and help determine the true underlying house price movements.
Source: Chesterton
The firm's CEO, Robert Bartlett, said that so far December's interest rate cut has had little effect on consumer confidence, adding: “For 2008 we believe that property prices will remain flat to negative 2 per cent through to Spring, but with a reduced number of transactions as a result of a deepening divide between buyer/vendor expectation.
"However, further reductions in interest rates should help to shore up confidence as the year progresses.
"Should base rates reduce to 5 per cent by the early summer, then we would expect some modest growth to re-enter the market."
Douglas McWilliams, cebr's chief executive added that, at best, the UK economy will see a slowdown in the coming year: "Evidence suggests 2008 will be the worst year for house prices since 1995 when house prices fell by 1.7 per cent - most economic commentators (including me) agree.
“What might make matters worse are the Home Information Packs (HIPs). Before there had been a surge of properties put on the market but since then the number has dried up. HIPs are an unnecessary tax on home sellers but their badly timed introduction could cause an additional weakening of confidence”
