Forecasts by the Halifax have shown that house prices will again fall by a further 2% this year, although they believe that the sound market foundations, with low interest rates, and a strong labour force, should curb the slowdown that is currently happening.
The Halifax also predict that the base rate in the UK has peaked at the current rate of 4.75%, and will slowly drop, and end the year half a percentage point lower at 4.25%.
Our view
We would tend to agree although we expect a greater fall in prices over 2005.