(1888PressRelease)
May 21, 2007 - While demand for housing has already been subdued following interest rate rises in August, November, January and May, house price growth has remained positive in some areas largely due to supply constraints.
However, Mr Brown announced on the BBC's Sunday AM show that he planned to increase the number of houses being built from the current level of 160,000-170,000 houses a year to 200,000.
While a recent report from the Town and Country Planning Association has suggested this figure should be increased to 220,000 to 240,000 to cope with the backlog, Mr Brown's proposals would undoubtedly have an impact as they stand, although it is unlikely to make things significantly easier for the majority of first time buyers.
Julian King, director of the UK's leading fast property purchasing firm, National Homebuyers adds: "When coupled with the inevitable increase in number of interest rate rises though, a fall in house prices is bound to be on the cards.
"Many analysts have suggested that interest rates will hit at least six per cent before the end of the summer. We further predict that mortgagees will be facing hikes up to 7.5 per cent within 12 months.
National Homebuyers purchase properties from vendors without the need for a Hip and at a timescale to suit the vendor, effectively guaranteeing a sale, on time. The company's website can be found
at www.nationalhomebuyers.co.uk/index.asp
and you can contact them by calling 0870 979 8118.
