The housing market will be subdued in 2008 but will bounce back as the impact of the credit crunch begins to wear off, it has been suggested.

Steve Cox, operations director of Spicerhaart Financial Services, a division of the Spicerhaart Group which runs around 250 estate agency branches across the UK and Europe, said that the property sector had seen "unexpected turbulence" this year.

He cited interest rate increases, a tighter lending market and the introduction of home information packs as the key factors behind the situation and warned that the next year could see further cooling.

"Buyers will be a lot more price sensitive than previously, and as such will only purchase if properties are correctly priced," he said, adding that sellers are unlikely to be able to bump up the price of their home.

However, there is hope on the horizon, with Mr Cox commenting: "As affordability constraints are eased and demand continues to outstrip supply, the long term future is set to be bright and we expect the housing market to return to its previously higher levels by 2009."

The predictions echo those of Nationwide, which last month forecast that house price growth would "pause for breath in 2008" after years of continual climbs.