Released on = May 4, 2007, 3:56 am

Press Release Author = Charlotte Burrows

Industry = Real Estate

Press Release Summary = A former advisor to the chancellor of the exchequer has
warned that interest rates may have to be raised to 7.5 per cent in order to put a
halt to the inflationary pressure that is undermining the UK\'s economic stability
says National Homebuyers.

Press Release Body =

Professor Tim Congdon, a member of the Treasury Panel of Independent Forecasters -
which helped chancellors with economic policy decisions before the creation of the
MPC by the Labour government - from 1992 to 1997, believes that the rapidly
expanding money supply is a major cause for concern.

An interest rate of 7.5 per cent might be needed to counter this, he speculated -
which would cause havoc in the mortgage market and could potentially lead to a huge
rise in the number of repossessions.

\"Inflation is back and it\'s going to get to four per cent by the middle of the next
year, even though I expect the [consumer price index] to fall back a little over
coming months first,\" Professor Congdon told the Daily Telegraph.

\"You can\'t get away with money supply growth of 12 per cent or 13 per cent like
this. It\'s not as bad as earlier cycles, but it is nevertheless bad and it\'s going
to end the usual way. Rates will have to go to 6 per cent to 6.5 per cent, and may
have to reach 7.5 per cent.\"

National Homebuyers, the UK\'s leading quick sale property company, adds that this is
a conservative view. Director Julian King says: \"If you look at interest rate
predictions, they seem to be rising more each month.

\"At the beginning of the year we predicted that interest rates would rise to six per
cent by the end of the year. Now this is universally accepted.

\"If Gordon Brown has his way it would be even higher. Homeowners who are stretched
beyond their means need to be aware that National Homebuyers is a genuine solution
for getting out of the interest rate trap.\"


Web Site = http://www.nationalhomebuyers.co.uk/newsarticle.asp?ID

Contact Details = Sterling House
20 Victoria Way
Burgess Hill
West Sussex
RH15 9NF
08709798118