News

Revival in services and housing – 5 April 2005 Evening Standard

The Halifax said house prices rose 0.5% in March, offsetting a similar fall the previous month and indicating the market is stabilising after slowing sharply in the second half of last year.

The bank’s chief economist Martin Ellis said the buoyant economy, strong labour market, low interest rates and a shortage of housing supply were limiting the extent of the downturn.

Economists said the upbeat reports meant a May rate rise remained a possibility.  However, the Bank of England’s monetary policy committee is still expected to leave rates at 4.75% for an eighth month on Thursday.