The Bank of England has stated that the amount of money people are borrowing from the value of their homes has dropped. This comes after the Halifax announced that house prices have remained virtually static within the first six months of 2005. According to the Bank of England, total mortgage equity dropped to 3.1% in the first quarter of 2005, down from 4.1% in the last quarter of 2004. House price inflation is continuing to rise in Scotland and Northern Ireland with an annual rise of 12.5% and 26.9% respectively.
Our view:
Property has stabilised but with many expecting interest rates cuts again, we can see a marginal increase in property activity.