RICS: house price inflation eases
The Royal Institution of Chartered Surveyors have today said that house price growth eased in February to its weakest pace in nine months.
It is believed that the impact of three interest rate increases since August has continued to wear down demand. House price balance fell to 24.0 in the three months to February from 28.0 in the three months to January. February's reading is the slowest rate of house price inflation since May 2006 and below analysts' forecasts for a balance of 27.0, although it remains just above the long-run average of 21.6.
Many economists expect the Bank of England to raise borrowing costs to 5.5% from 5.25% in the coming months as policymakers attempt to bring down above-target inflation. The RICS price figures contradict surveys from the Halifax and Nationwide building societies which showed strong price growth last month in spite of rising interest rates.
It is believed that the impact of three interest rate increases since August has continued to wear down demand. House price balance fell to 24.0 in the three months to February from 28.0 in the three months to January. February's reading is the slowest rate of house price inflation since May 2006 and below analysts' forecasts for a balance of 27.0, although it remains just above the long-run average of 21.6.
Many economists expect the Bank of England to raise borrowing costs to 5.5% from 5.25% in the coming months as policymakers attempt to bring down above-target inflation. The RICS price figures contradict surveys from the Halifax and Nationwide building societies which showed strong price growth last month in spite of rising interest rates.
posted by ew at
12:09 PM
0 Comments:
Post a Comment
<< Home