(1888PressRelease)
May 25, 2007 - Although the latest Rics survey shows an interest rate of 5.5 per cent has had a significant impact on buyer affordability - with new buyer enquiries reported to have fallen for the fifth consecutive month - house prices rose for an 18th month in succession.
As a result, Rics spokesperson Ian Perry predicted the MPC will opt for another rate rise later on in the year in a bid to ensure the housing market is sufficiently cooled.
"Last week's interest rate hike may not be the last as the housing market has not slowed as quickly as expected given the initial round of rate rises," Mr Perry said.
"With prices buoyant and conditions still tight another rate rise later in the summer looks likely."
House price growth was reported to be especially buoyant in Northern Ireland, Scotland and London.
However, negative house price growth was a feature in both the East and West Midlands.
Julian King, director of property purchase company National Homebuyers says: "Why this is a surprise is beyond me. We have been predicting rate rises to up to 7.5 per cent within twelve months for over a year.
"National Homebuyers is at the fore-front of the quick sale property industry and as such we speak to thousands of people every week who are seeking fast property sales to avoid further debt.
"Given the need to slow the economy down, borrowers who have overstretched themselves are going to take a hit. A bit hit."
National Homebuyers provides quick property sale solutions regardless of the need or reason for selling and can be contacted
on 0870 979 8118
or by clicking www.nationalhomebuyers.co.uk/index.asp.
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