14
Jan
UK housing market 'cooling down'
The property market in Britain is continuing to cool as current
economic uncertainty continues in the wake of the global credit
crunch, according to official figures.
Data from the Department of Communities and Local Government (DCLG)
indicates that house prices dropped in November 2007 by 0.8 per
cent, compared with an increase of 0.1 per cent in October.
The annual rate of house price inflation in the UK fell to 9.5 per
cent in November, down from 11.3 per cent in October, while the
average rate for the quarter to November 2007 dipped to 10.5 per
cent from 11.1 per cent.
Between October and November last year, the DCLG estimates that the
average cost of a home in Britain dipped from £220,195 to
£218,330.
Based on information from sale completions, the DCLG figures
support previous reports indicating a slowdown in the UK housing
market and a cooling of property prices following several years of
steep rises.
The Bank of England monetary policy committee (MPC) cut interest
rates in December last year amid rumours of an economic slowdown
and maintained the base rate at 5.5 per cent. Analysts are now
predicting a further rate cut amid falling house prices, slower
consumer spending and rising energy prices.
