RICS: May Halifax house price figures

Commenting on today’s Halifax figures, David Stubbs, RICS senior economist said: “The housing market slowdown is now well and truly underway. With mortgage rates continuing to rise, first time buyers are finding it increasingly difficult to afford the massive mortgages they now require to get on the ladder.

“Although the housing market will continue to slow in coming months, good economic conditions and a lack of homes for sale will continue to support prices and prevent the crash that some commentators continue to predict.

“However, if interest rates were to rise to 6% before the end of the year, a sharper slowdown and a difficult 2008 would be on the cards.”