The UK housing market is much better placed than its European counterparts, according to new figures.

The Royal Institution of Chartered Surveyors'' (Rics'') European Housing Review 2008 shows that price growth across the continent slowed markedly.

However, the UK was highlighted as being in slightly better health and the report''s author said that interest rates will play a key role in house price movements in 2008.

"The often repeated dilemma currently facing monetary authorities is that slowing economies - and housing markets - need lower interest rates, but higher inflation is against them. How Europe''s housing markets fare in 2008 depends on how that tug-of-war develops," said professor Michael Ball from Reading University.

"The UK housing market looks much better placed than many others in Europe because of the greater interest rate flexibility," he added.

The Land Registry recently reported that house price growth reached 0.9 per cent in January.