Housing market ''to slow''

The housing market is to slow down due to consecutive interest rate rises, according to a leading economist.

The Centre for Economics and Business, a research consultancy, has found that price inflation and rising mortgage repayments are stifling disposable incomes and increasing the numbers of insolvencies.

Jonathan Said, a senior economist at the firm, explained that inflation is causing costs to rise faster than household incomes which is driving a consumer-led slowdown in the property market. It has started already and will continue all year, he forecasted.

Mr Said added: "The Retail Price Index has risen this year - firstly because of energy - but there are also other factors such as housing costs or house related expenditure and furniture."

Education and the rise in tuition fees or hikes in air passenger taxes also result in a rise in the costs of living on top of which came a rise in the Bank of England''s base rate.


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