House price growth has slowed substantially across Europe, according to the Royal Institute of Chartered Survetors European Housing Report 2008, with falls during 2007 recorded in most countries - the highest falls recorded in Ireland and Germany.

Housing markets across the continent experienced marked falls in activity from summer onwards and according to the report "2007 will probably go down in histry as the year the great European house boom ended."

Rising interest rates rather than the post-autumn credit crunch were the prime causes of the slowdowns, as mortgage availability remained good. Housing market prospects in 2008 depend on what happens to interest rates.

High year on year price changes in countries like Poland reflected developments in the first half of 2007 only, as early gains were trimmed from late summer onwards.

There are prospects for some house price falls during 2008 but the scale of any housing market downturn is likely to be far less than the last downturn in the early 1990s.

The UK housing market looks much better placed than many others in Europe as interest rate cuts are predicted to stabilise prices in 2008.