Martin Ellis Continuing Quotations

The weakening labor market, the continuing high level of house prices in relation to earnings and pressure on householders' finances from the recent hikes in utility and council tax bills are expected to curb demand in the coming months, therefore preventing a sustained acceleration in house price inflation.

This pickup in monthly house-price inflation is consistent with the continuing upward trend in market activity in recent months and the previous pattern of house price movements when the Bank of England begins to reduce interest rates.

The continuing high level of house prices in relation to earnings will curb the ability of many potential first-time buyers to enter the market.