RICS: Halifax March house price data

Commenting on the Halifax house price data, Simon Rubinsohn, RICS chief economist said: "The sharp fall in the Halifax house price index in March highlights the growing pressure on the residential market as lenders continue to scale back their activity in the market. Loan to value ratios are being lowered at the same point as borrowing rates are being raised putting increasing pressure on first-time buyers who are having to find ever larger deposits. There is moreover a real risk that year-on-year house price inflation will turn negative over the next month or two. This will compound the negative newsflow on the housing market.

"The Bank of England could respond to growing fears about the impact of the credit crunch and the worsening state of the property market by cutting interest rates on Thursday. Even so, we suspect that any immediate benefit for new home buyers is likely to be limited."