House prices are in for a two per cent increase by 2008 and a simple one per cent rise next year, according to research by Hometrack.

House prices are in for a two per cent increase by 2008 and a simple one per cent rise next year, according to research by Hometrack.

Acceleration has particularly affected Scotland, where a recent study by National Savings & Investments (NS&I) uncovered the fact that it is now taking buyers 12 months longer to stump up a deposit than it did a year ago.

Other places for house price growth are anticipated to be London and the south-east, which will see prices scale upwards due to the successful Olympic bid

Richard Donnell of Hometrack said: "Affordability constraints remain the biggest barrier to house price growth over 2006.

"We expect the annual rate of house price growth to remain in low single digits over the next few years, supported by fewer sales and a continuing shortfall in new housing supply," he added.