News

Slide in house prices gathers pace

The Independent (business section) 27th December 2004

Nationwide and Halifax surveys, which are based on mortgage approvals and which suggest prices have risen some 16 per cent this year. 

The Bank of England has been sucessful its efforts to dampen demand with four interest rate rises this year.  This month, for the first time in 16 months, its monetary policy comimitee discussed the possibilty of reducing rates.

Mr Wriglesworth said: '' My confidence in a restoration of house prices is based on four key facts: household incomes are increasing by 5% per annum; unemployment is continuing to fall; lenders are increasing the multiples of income on which they will lend; and interest rates are still historically low.  There is no reason why any of these factors should dramatically change over the coming 12 months.