(1888PressRelease)
June 17, 2007 - According to a leading property market expert, the market is suffering as a result of rapidly diminishing demand.
This trend has been brought about as the Bank of England has been forced to increase interest rates to quell rampant inflation, Howard Archer, chief UK and European economist at Global Insight, believes.
However, these measures have had an adverse affect on mortgage holders.
"The housing market is coming off the boil as demand is increasingly pressurised by the rising affordability pressures stemming from high interest rates," Mr Archer said in the Daily Telegraph.
Meanwhile, Liberal Democrat shadow chancellor Vince Cable has predicted that the housing market may not just come off the boil, but cool down completely.
"The recent weakening of the housing market in many parts of Britain may well reflect the difficulties experienced by many mortgage borrowers. The situation could yet get a lot worse," he commented.
Julian King from fast purchase property firm National Homebuyers echoes this comment. "Things will get a lot worse. Rather soon.
"York and Nottingham are the start of the downturn in the property market. The rest of the UK will follow shortly.
"Lending is still strong, but it is stabilising following major growth in 2006.
"With higher interest rates now having a sizable impact, the slowing in activity that we have been expecting looks set to increase dramatically."
National Homebuyers are the UK's leading fast purchase property company, guaranteeing to make an offer on any property in the UK, regardless of condition or location. The company use independent Rics (Royal Institution of Chartered Surveyors) valuers to gain a genuine market valuation on each property before making an immediate cash offer.
Further information is available at www.nationalhomebuyers.co.uk/index.asp.
