THE housing market will remain healthy in 2002 with interest rates being the single biggest factor affecting the sector.

David Stuart-Smith, of Andrew Grant Estate Agents, in Worcester, believes that despite the tragic events of September 11, economic confidence is still strong.

"The fact that interest rates have fallen to their lowest level in more than 40 years has helped to sustain the housing market," said Mr Stuart-Smith.

"Despite talk of recession, there has never been a better time in which to buy a house."

He said there would be pressure to maintain the current level of interest rates in order to keep the cost of borrowing for industry low.

"This will help the sector weather the economic slowdown and, in turn, will continue to sustain the housing market as well."

Handpicked

Andrew Grant is a member of the Home Sale Network, Britain's largest network of independent estate agents, who are all handpicked as being the best in their locality.

The network conducted a survey among its members to find out what the biggest influence on the housing market was in 2001, and what was likely to be the biggest influence in 2002.

The findings showed 58 per cent believed interest rates were the most important factor affecting the housing market in 2001 and 68 per cent believed interest rates would have the most influence on the housing market in 2002.

Sixteen per cent said lack of confidence in the economy and 6 per cent said job security fears would be the most likely issues affecting the market this year.

Overall, 84 per cent said the housing market would remain healthy in 2002 with just 16 per cent predicting a downturn.

"What is interesting is that the findings of the survey point to a strong level of confidence in Britain's economy," said Richard Tucker, director of the Home Sale Network.

"Without wanting to be too bullish, I think the volume of house sales will be healthy and that prices will continue to rise."