House Price Growth to Slow?

Housebuilder George Wimpey plc is predicting a slowing of the UK property market, largely due to recent increases in interest rates.

In separate news, the deputy governor of the Bank of England, Sir John Gieve, has suggested that interest rates will need to rise again in July in order to cool the housing market (Daily Mail, 26 June 2007).

He pointed out that: "House price inflation in London has outstripped the rest of the UK with prices in the smartest areas of Kensington and Chelsea climbing by 40 per cent since the start of 2005".