House price inflation expected to slow

Martin Ellis, chief economist at Halifax, today says although house prices rose by 1.7% in October, there have been indications of a weakening in activity at earlier stages of the house-buying process, suggesting inflation may soon begin to slow. He states: “Significantly higher utility bills and the increase in mortgage rates over recent months – both in fixed and variable rate products – are expected to constrain housing demand, causing the annual rate of house price inflation to ease over the coming months.” Following signs of a levelling off in activity in June to August, the number...