“The Bank of England made the right decision with today’s announcement. The five increases in the last year have had the required effect and slowed a previously racy housing market.
“We will not be surprised to see a further quarter of a point rise before the end of the year, although we must warn the Bank that further rises are not needed by the housing market, let alone the dismal manufacturing sector, and will do it no favours.
“Mixed messages are coming from other market reports. Our 10,000 member agents have direct exposure to what is happening at the frontline and their evidence reveals that the market is indeed showing definite signs of stabilising. We are expecting a gradual slowdown in future months as prices naturally correct themselves. However, it is highly unlikely that prices will crash by anywhere near the levels predicted by those commentators intent on producing ‘shock’ headlines.”
