Inflation

Confirmation interest rates are likely to hit 6% before dropping has sparked angry protests across the industry.

Research published today by the National Housing Federation (NHF) claims that the average house price in England will rise to over £300,000 within five years.

Ratings agency Fitch claims that UK house prices could be as much as 20% overvalued compared with their long-term average.

House prices will begin to fall in August as interest rates give homebuyers the upper hand in the negotiating process, according to Your Move.

The UK economy grew faster than expected in the second quarter of 2007, indicating that further interest rate rises may be needed to curb inflation, according to the Office for National Statistics.

The rate of inflation facing the over-75s fell from 3.4% to 3.1% in June but it remains higher than the inflation rates facing other age groups, according to data from Alliance Trust, the financial services group.

House prices have been growing at an average rate of £50 per day during the past 12 months, according to the latest figures from Nationwide.

The high price of necessities such as power and food, has caused inflation for the over 75s to rise to 36% above the headline rate of 2.5%.

The Bank of England's decision to hold interest rates has not dampened anticipation among investors there will be another hike before the end of 2007, according to Barclays Stockbrokers.

Today's quarter per cent rise in interest rates won't be enough to stave off inflationary pressures and should have been bumped up by 0.5%, according to F&C's Ted Scott