(1888PressRelease)
May 12, 2007 - According to Richard Donnell, Hometrack's director of research, affordability will be an increasing concern for Britons should rates rises, with dampened demand expected to be a direct result.
"Aside from any external shock to demand we can identify the two main causes of slower house price growth as being further increases in affordability pressures and/or an above average growth in the supply of homes for sale," Mr Donnell said.
"We expect both these factors to result in a slowdown in the rate of house price growth over the second half of the year."
However, demand is still strong in the lead-up to the predicted rate rise, with average house price growth of 6.8 per cent reported by Hometrack in the last year - up from 6.7 per cent in March.
This represents the highest annual change since June 2003.
Julian King, director of National Homebuyers, the UK fast property purchase company, says: "We have been predicting the effects of ongoing interest rate rises for 12-months.
"The certainty of more and more interest rate hikes is already having an effect. National Homebuyers is being inundated with people enquiring about a quick sale solution for their property as their local marketplace is already going backwards.
"We will happily discuss our solutions to help people worried about the future value of their property."
