House
prices are slowing down in terms of price growth, according to latest
research, suggesting more
mortgage borrowers may be able to ascend the
property ladder .
The latest
Halifax house price index showed that
properties rose by just 0.1 per cent in May, which is the lowest monthly increase since January.
Though the
Council of Mortgage Lenders has revised its growth prediction up for the year, many believe that rising unemployment and high energy bills will limit any further growth.
Martin Ellis, chief economist for Halifax, commented: "The pressures on the
household sector resulting from higher unemployment and significantly higher
household bills, together with the current high level of
house prices in relation to earnings, are likely to constrain
housing demand and curb house price growth and activity over the remainder of 2006."
Meanwhile, Howard Archer from Global Insight felt that recent house price figures from
mortgage lenders coinciding with a reduction in the number of
mortgages successfully approved, suggested a slowdown in the
market .
The
news follows yesterday's no change to
base rates as announced by the
Bank of
England .
Interest rates were frozen for the tenth consecutive month, with analysts suggesting it was result of rising inflationary fears.
