Inflation

Government ministers believe UK house prices could fall by up to 10% this year it was revealed in a leaked Cabinet briefing note.

A 4% annual inflation peak now looks "plausible" as today's jump to 3% appears too low against economist's predictions for the rest of the year, New Star chief economist Simon Ward says.

The UK housing market has continued to weaken, with ever larger numbers of surveyors reporting house price falls, according to the Royal Institute of Chartered Surveyors (RICS).

The Bank of England's Monetary Policy Committee (MPC) has decided to keep interest rates at 5%.

Halifax says house prices fell by 0.9% in the twelve months to April, providing further evidence the housing market is in decline.

House prices have suffered from the first year on year fall since 1996, according to Nationwide's latest house price index.

The UK housing market is unlikely to fare better than other markets around the world, according to Jonathan Davis, managing director of chartered financial planners Armstrong Davis Limited.

Prices for new build properties rose in March, the first increase in prices since December 2007, according to SmartNewHomes.com.

House prices are falling on a monthly basis but the Special Liquidity Regime, announced today by the Bank of England, will bring the market back to normal by September, according to Assetz.

Fidelity Multi-Asset Strategic fund manager Trevor Greetham is keeping his underweight positions in equities and property as the world tackles ‘stagflation' difficulties.