14 Jan

UK housing market 'cooling down'

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.

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