David Bexon, chief executive of SmartNewHomes.com said: “Whilst we are starting to see confirmations of a return to positive house price growth in the market reports, we have also heard profit warnings from two major construction companies this week [Wimpey & Mowlem], showing that we can not confidently give the housing market a full bill of clean health just yet. Interest rates are still a major influence on buyer and seller activity, and with the Bank of England refusing to bow to economic pressure and reduce interest rates this month, the revival could be short-lived.
“However further declines in both customer spending and manufacturing output make a move to a 4.5% base rate likely in August. Such a move will be welcomed by the housing market and is likely to act as a catalyst increasing activity and prices across the board.”
