House price inflation drops
Published On 13 September 2007
Recent interest rate rises seem to have had their desired effect and made mortgages more expensive for people, a new report suggests.Indeed, the latest figures from the Royal Institution of Chartered Surveyors (Rics) show that house price growth in the UK turned negative in August as consumers began to feel the financial pressure.
Overall, 1.8 per cent more chartered surveyors reported a fall than rise in house prices in the month.
This compares to the 10.8 per cent more who predicted a rise last month and is the first negative result since October 2005.
"Potential house buyers have become far more cautious as they wait and see what affect interest rate rises will have on household finances," explained Rics spokesman Ian Perry.
"Affordability is at its most stretched in over a decade and many will worry that rising mortgage repayments will prove a step too far."
Recently, Katie Tucker of John Charcol, said that it was vital that people looking for a mortgage or remortgage deal should consider consulting a financial adviser as the current lending situation is extremely complex.
