House prices "flat" unless rates are cut, predicts estate agent

This year will see a flat housing market unless the base rate is cut to five per cent, an estate agency has claimed.

Chesterton made the prediction after releasing its poll of polls, which revealed varying figures for house prices from different survey providers.

These varied from the 3.2 per cent decline in prices recorded by property website Rightmove to the 1.3 per cent increase indicated by Halifax.

However, four of the seven surveys showed a rise or fall in the most recent month covered of under one per cent.

Chesterton interpreted this as a sign of "flat" growth, with chief executive officer Robert Bartlett suggesting that the first part of the year would provide a "great opportunity" for those planning to look for a bargain deal.

Mr Bartlett said there would be renewed market growth from the summer onwards if the base rate was cut as low as five per cent by then.

Yesterday Barclays Stockbrokers forecast that the Bank of England would make a series of cuts, with the base rate reduced as low as 4.75 per cent by April.


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