House prices slowing down
Society reported that property prices increased by only 0.1 per
cent during June and July 2007
Throughout the whole year, this month has been the slowest rise,
simply due to interest rates rising.
Next week the Bank of England are looking to increase
the interest rates further. Repayments on a £100,000 mortgage will cost borrowers an extra £80.
The Bank of England are looking to increase interest rates to
6 per cent, this will only cause first-time
buyers and existing
homeowners financial problems.
Chief economist Fionnuala Earley hinted additional rate raises
could transmit the housing market to crash.
She added: 'The Bank of England now faces a tough balancing act
in the months ahead, with tightening consumer finances on the
one hand and resilient economic growth on the other.
'Household finances are under considerable pressure-and house
prices and consumer spending will both see a slowdown in the
second half of the year.'
Yesterday Northern Rock the reputable mortgage
that house prices could slow down towards the forth quarter of
2007. Adam Applegarth, chief executive said annual growth could
decrease by 4 per cent.
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