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LONDON (Thomson Financial) - The UK housing market, which is already showing signs of cooling off, is yet to fully absorb the impact of the Bank of England's recent tightening of monetary policy, a leading industry body said.
"The full impact of current rate hikes on the housing market should not start to appear until after the summer," economists at the Royal Institute of Chartered Surveyors said.
The housing market continues to grow strongly but recent surveys have given indications that the boom may be coming to an end.
The Land Registry survey for April showed prices are being buoyed by London, while house prices actually fell in four English regions. Meanwhile, figures from the Bank of England showed mortgage approvals fell for the third straight month in April.
Both of these indicators were compiled from data taken before the BoE's quarter-point hike in interest rates in May.
The central bank has raised rates four times since last August, to a six-year high of 5.50 pct, in an attempt to bring inflation back down to the 2 pct target. Many analysts believe at least one more rate hike is on the cards this year.
LONDON (Thomson Financial) - The UK housing market, which is already showing signs of cooling off, is yet to fully absorb the impact of the Bank of England's recent tightening of monetary policy, a leading industry body said.
"The full impact of current rate hikes on the housing market should not start to appear until after the summer," economists at the Royal Institute of Chartered Surveyors said.
The housing market continues to grow strongly but recent surveys have given indications that the boom may be coming to an end.
The Land Registry survey for April showed prices are being buoyed by London, while house prices actually fell in four English regions. Meanwhile, figures from the Bank of England showed mortgage approvals fell for the third straight month in April.
Both of these indicators were compiled from data taken before the BoE's quarter-point hike in interest rates in May.
The central bank has raised rates four times since last August, to a six-year high of 5.50 pct, in an attempt to bring inflation back down to the 2 pct target. Many analysts believe at least one more rate hike is on the cards this year.
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