Housing market 'shows signs of cooling'

20-Feb-2007

New research has shown the housing market may be showing signs of cooling, which may be of interest to first time buyers concerned over rising house prices.

According to a data released by Propertyfinder.com, the number of people - which may include first time buyers - who believe that housing prices will continue to rise has fallen to 78 per cent, a decrease of six per cent since December 2006, reports Reuters.

To find out about the different ways of financing a first home, see our section ‘Affording Your First Home’.

Indeed, in a recent Reuters survey, 18 out of 22 analysts confirmed their belief that housing prices have now reached their upper limits.

"Our research indicates that, whilst the rate hikes in the second half of 2006 had a slight dampening effect on the market, the shock January rise has made a much bigger impact," said Warren Bright, chief executive of Propertyfinder.com.

"Recent government data indicated annual house price inflation was falling just short of ten per cent in December, but this is looking at the market in the rear view mirror," he added.

In related news, a Bank of England report has shown that factors which have kept UK inflation low may now be weakening.

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