Housing market slowing down
June 7, 2007 by admin
Filed under News, News-Mortgages
House prices in the UK are increasing in price at the slowest rate they have all year.
The Halifax House Price Index shows that properties increased in value by 0.3 per cent in May, signalling the third consecutive month of the market slowing down.
The average house price sits at a lofty £196,893 and buyer interest fell for the fifth consecutive month.
The housing market is expected to continue to slow down in the coming months, with increasing interest rates and reduced real earnings each playing a part.
Commenting on the 0.3 per cent price increase, Martin Ellis, chief economist at Halifax, cited rising interest rates as the main factor.
“This is the smallest increase so far this year and the third successive easing in the monthly growth rate,” he said.
“The recent slowing in monthly house price inflation, together with further evidence of moderation in housing market activity, suggests that the interest rate rises since last summer are having an impact on the market.”
A slowing down of the housing market is good news for first-time buyers as ever-increasing house prices are making it very difficult for young buyers to get onto the property ladder.
Well, it was kind of expected. Real estate can’t be booming when there is a recession.