House price rises 'bad news'

Posted: 01 Apr 2010 09:53:47 GMT

Reports that UK house prices are rising is not the good news that people are claiming it to be, one expert has suggested.

Michael Baxter, editor of investmentandbusinessnews.co.uk, says: "Every time house prices go up people think it is a good thing. It is bad news that house prices go up."

He states that it is dangerous to assume that just because Bank of England interest rates are so low we can justify property values going up, adding that people who have been advised to buy a home because of low rates have been given "very reckless" advice.

However, Mr Baxter suggests interest rates will remain at the historically low level of 0.5 per cent for quite some time.

At the last meeting of the Bank of England Monetary Policy Committee on March 4th it was decided that interest rates will remain at their current level.

The next meeting of the committee is set to take place on April 8th.

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