While consistent economic growth and relatively low unemployment have been a feature of prime minister Tony Blair's decade in power, it has been suggested that his economic legacy might now be the increases in interest rates effectuated in his last year of office which have acted to put mounting pressure on homeowners' finances.
Interest rate hikes in August, November, January and May - and the prospect of further rises before the summer is out - have impinged markedly on buyer affordability, and many who do decide to purchase a new home often find themselves under severe pressure as they have overstretched themselves financially to achieve their goals.
Despite this, house price growth has remained positive because of a shortage of supply, although Martin Ellis, Halifax's chief economist, expects growth to be tempered in the near future.
"Negative real earnings growth and the increases in interest rates since last August…are expected to exert increasing pressure on householders' finances, resulting in a slowdown in house price inflation over the coming months," he remarked.
Data from Halifax shows house prices have surged from £68,085 to £196,745 in Mr Blair's time in office.
However, there has also been rise in the number of repossessions in recent months.
Britons in financial difficulty could consider selling their properties to National Homebuyers and then renting them back to provide some much-needed capital. The company which specialises in the fast purchase of properties for people needing a quick sale for whatever reason is sure of continued rate rises.
Director, Julian King says: "We predicted the rise to 5.5 per cent over a year ago and we are confident in our assessment that these rises will continue to over seven per cent within 12 months.
"The rate rises, unrealistic asking prices, lack of market confidence and negative growth in earnings all points to a downward trend in the housing market and more people facing an unstable financial future."
National Homebuyers is the UK's leading fast purchase property firm, buying thousands of properties every year for people needing an alternative to the delays and costs of selling on the open market. More information is available at www.nationalhomebuyers.co.uk/
