Housing market 2008 -- what the experts predict

By Jennifer Hill, Personal Finance Correspondent

LONDON (Reuters) - Signs have been mounting of a slowdown in Britain's property market, so what are the prospects for 2008?

A total 1.4 million people will see their fixed rate mortgage deal end in the early part of next year, and each will be forced to pay an average of 200 pounds per month more to meet the cost of servicing their home loans.

Tighter lending conditions could add pain to consumers already mortgaged to the hilt -- outstanding housing debt stands at more than a trillion pounds -- and household finances look set to be stretched further by rising food and energy costs, as wages fail to keep pace with inflation.

This will lead to a record 130,000 people being declared insolvent during 2008, according to accountant KPMG, and financial woes, say some experts, will severely dent consumer confidence and exacerbate the housing market slowdown following a period of record growth.

House prices have risen 179 percent over the past 10 years from an average price of 70,000 pounds in late 1997.

Others, however, believe the market is more resilient, with demand continuing to stoke prices.

Here are some housing market predictions for 2008:

* Property investment company Assetz predicts annual growth of 5 percent due to demand continuing to outstrip supply, bolstered by strong immigration.