Predictions of a one per cent increase in house prices over the course of 2008 are "overly cautious", according to one analyst.

Stuart Law, chief executive of investment adviser Assetz, makes the assertion in light of figures from the Council of Mortgage Lenders.

The industry body anticipates little change in property valuations in the coming year - which could mean the maximum amount of homeowner loan available to Britons is nearing its peak.

But Mr Law claims a figure of five per cent growth is more likely to materialise, increasing the equity held in property around the country.

"With fewer sellers than buyers expected in the market, this will in fact support prices, keeping them buoyant," he explains.

Shadow chief secretary to the Treasury Philip Hammond responded to the CML figures by noting the prevalence of lending in recent years - which could include secured lending such as homeowner loans.

He states that prime minister Gordon Brown's tenure as chancellor was typified by "years of easy credit fuelling a house price boom".ADNFCR-1287-ID-18337524-ADNFCR

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