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As we begin, in the last weeks of the year 2007, it is natural to look ahead, what might happen in 2008.

Often future predictions are made from the back of what happened in the last 12 months. And it was a very busy year for the UK market.

There have been numerous changes and predictions for the future. We take a look at what has happened so far in 2007, and how these affect the market next year.

First, the big question, all of us - house prices.

UK house prices have an interesting year. Some organizations have reported that prices are falling, others have argued that they have in some areas. Overall, it seems likely there is at least a slowing of growth of prices.

The current average price for a British property £ 225,826. And the Nationwide Building Society, says in 2007 the annual price growth 9.7 percent.

But a new report has just released has predicted zero per cent house price growth in 2008.

He says that UK house prices will remain exactly as they are today. That means real, that the value of homes falls, as the cost of living continue to rise.

The building society to blame this potential "freeze" on a slowdown in the economy as a whole. He pointed out that the price growth was in 2007 on the strength of the British economy, particularly in finance and manufacturing.

But in the next 12 months, expects economic growth from three to two percent. And if this in combination with lower disposable incomes caused by the cost of gasoline and other rising bills, plus high interest rates and tighter lending conditions, it is likely to slow the economy.

The Nationwide also believes there is a decline in demand in buying houses to let the British.

Of course, the likelihood is that a slowdown in price growth is only a short time. Many experts agree that long-term prospects for property value growth remains good. It is only something to worry about if you are considering selling real estate in the next 18 months or so.

Let's take a closer look at one of the factors affecting prices - interest rates.

Since August last year, prices are up five times. But they have remained the same for the last three months, and many people believe that they fall before the end of the year.

If the economy sees a slowdown as predicted, it is likely that interest rates are once again in 2008. This is good news, since they are simply some of the financial pressures squeezing people and give them a little more disposable income. This is probably the economy a small boost, which in turn is good for UK property.

The other important factor in order for the year 2008 has been a major source of controversy in 2007.

Home Information Packs or hips, were for the first time for a four-room house on 1 August this year, and three bedroomed properties on 10th September.

A survey by the Royal Institution of Chartered Surveyors in September showed that the number of properties with a HIP on the market continued to decline, as compared to the same month in 2006.

And 73 percent of surveyors to the survey was a decline in three or more bedroom properties come onto the market.

Experts believe that the effect of HIPS will be in 2008. They believe that people get used to the idea that to create a document before making its UK properties for sale. And in the time that means that the hips have little effect on the market. Whether that will happen in 2008 or 2009 remains to be seen.

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