Slow growth for British homes

Date: 16/02/2007 14:51

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The majority of homes in the UK did not increase in price from December to January, as the recent three interest rate rises in six months appear to be taking hold of the market.

Some 63 per cent of homes across the country retained their value in the monthly period, reports the Royal Institution of Chartered Surveyors (Rics), and only a fifth of surveyors reported a rise in prices, down from 36 per cent in December.

And new buyers, who have been struggling with worsening affordability of late, could be in for an extra windfall in June this year as the home information pack (Hip) comes into force.

Rics spokesman Richard Franklin said: "We may see the current supply and demand imbalance change as we head towards spring ahead of the introduction of Hips.

"Despite being a more watered-down version of the government's original plans, concern over the pack's shelf life and the bureaucracy of the scheme, could see an increase in available stocks as homeowners look to get their properties on the market before Hips come into play on June 1st."


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