9 February 2012

The money is on no growth

01/03/2005

There is likely to be a continued slow-down in the UK housing market in 2005, as the latest figures from the Halifax highlighted. House prices increased 0.8 per cent in January to £163,750, however, for the past six months, house prices only improved 1.4 per cent.

The decision by the Bank of England to leave interest rates unchanged due to mixed economic signs will come as a relief to many homeowners. But house prices are expected to fall during the year. Overall, the Halifax predicts that 2005 prices will fall 2 per cent compared to a rise in 2004 of 15.1 per cent. Britain's second largest building society, Britannia, echoes the sentiment by suggesting there will be a period of no growth in house prices for two years, its chief executive Neville Richardson commenting: 'We expect to see a soft landing... I would put my money on no growth.'

Sector: General Financial

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