'sharp' Fall In House Price Growth Expected Following Rate Rise Says National Homebuyers.

May 14, 2007 - PRLog -- Julian King, director of National Homebuyers, the UK's leading fast purchase property company says: "According to the forecasting company cebr, the housing market is set to cool even if the MPC keeps interest rates on hold at its next meeting as potential homebuyers are already struggling to raise the necessary funds.

"It's a given that rates will rise to six per cent soon and we predict that these rises will continue to 7.5 per cent to combat the effects of inflation."

It looks increasingly likely that a hike of 0.25 per cent will be announced - bringing rates to 5.5 per cent - leading cebr to believe that house price growth will be further curtailed.

"The latest evidence to date suggests that the housing market is beginning to slow gradually - in line with our earlier predictions," the firm said in its latest 'Forecasting Eye'.

"We expect that slowdown to sharpen with an almost inevitable interest rate rise in May."

As well as reducing demand for housing, existing homeowners are expected to suffer as a result of higher interest rates.

Website: www.nationalhomebuyers.co.uk