Property inflation levels 'stable in April'

Posted: 10 May 2007 10:01:38 GMT

New research from Halifax has claimed that house price inflation was relatively unchanged for the month of April.

New research from Halifax has claimed that house price inflation was relatively unchanged for the month of April.

According to the bank, average house prices rose by 1.1 per cent, which meant the annual rate of growth - a quarterly year on year figure - decreased from 11.1 per cent to 10.9 per cent.

On average, a property in the UK will now cost the buyer £196,745. Halifax claims that the overall stability represents a good economic base in the country which keeps up demand.

Chief economist at the bank Martin Ellis claimed that while the figures were healthy at present, future interest rate rises could have an impact on property inflation.

"Negative real earnings growth and the increase in interest rates since last August, however, are expected to exert increasing pressure on householders' finances, resulting in slowdown in house price inflation over the coming months," he commented.

Halifax said the increase is the slowest this year so far. The cost of borrowing could rise if the Bank of England raises interest rates for the fourth time in less than a year.

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