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July 2, 2007

Bank of England say prices will not fall

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by Kay Mitchell

Bank of England say prices will not fall

The Bank of England’s property advisory forum has announced that UK house prices are not about to decline. The comments have arisen as many experts anticipate that interest rates will rise to 5.75% next week.

The rate of interest has risen 4 times over the last 10 months and this has caused concern that the market will be affected as bad debt and insolvencies continue to increase.

The property forum highlighted that interest rates going up is bad for the property market but there are other issues such as employment and affordability. However, the forum is optimistic and believes that prices are not going to drop.

House price inflation has been solid over the last few months in spite of a decline in the number of mortgages approved.


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