(1888PressRelease)
August 24, 2007 - It has been revealed that consumer price index (CPI) annual inflation fell to 1.9 per cent, just below the government's target.
Despite this, experts are still predicting that the base rate will rise, making it even more difficult for homeowners to sell their property.
Jonathan Said, senior economist at the Centre for Economic and Business Research, predicts that the Bank of England will increase rates in the coming months.
"Our view is that the decline in inflation this month is more an over reaction to weak demand in July, rather than the disappearing of the underlying food and commodities supply shortages," he commented.
"Hence the inflation battle is not over yet. It is likely to rise again in the medium term, so that the Bank of England remains set to raise rates to six per cent."
A further rise in the base rate could have a devastating effect for home sellers, with the Royal Institution of Chartered Surveyors revealing that first-time buyer enquiries plummeted in July.
Fast house sale company National Homebuyers also reports an influx in calls from home sellers who are unable to sell their property because of a lack of buyers. Operations Manager says: "Homeowners have never had it so bad.
"The drastic lack of buyers is going to decrease as the property trading year end nears.
"Home sellers are finding a guaranteed buyer with National Homebuyers and we have seen enquiries increase 95 per cent from June to July this year."
National Homebuyers are the UK's leading fast property purchase firm, guaranteeing to make an offer to purchase any property in the UK for vendors who need a quick sale.
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