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Housing market 'mini boom' faltering

09 June 2006
According to market analysts Global Insight, the recent 'mini boom' in the UK housing market is coming to an end.

The latest Halifax house price index shows a modest increase in May, up just 0.1 per cent – the lowest rise since the prices of houses fell by 0.2 per cent at the beginning of the year.

Howard Archer, chief UK and European economist for Global Insight, said that Halifax's figures were further evidence of house prices "losing momentum".

"While it is premature to draw any firm conclusions, there are growing signs that the recent 'mini boom' in the housing market is faltering," he commented.

"Consequently, we are becoming modestly more confident in our long-held belief that house prices will ease back into an extended period of relatively modest rises over the coming months."

Mr Archer cited increasing utility bills and extended house price hikes balanced against record employment levels and increases in borrowing opportunities for the "levelling out" of the market.

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