Released on = May 4, 2007, 12:43 am

Press Release Author = Charlotte Burrows

Industry = Real Estate

Press Release Summary = House price growth will fall sharply should the Bank of
England\'s monetary policy committee (MPC) decide - as appears likely - to increase
interest rates later this month, it has been predicted says National Homebuyers.

Press Release Body =

Julian King, director of National Homebuyers, the UK\'s leading fast purchase
property company says: \"According to the forecasting company cebr, the housing
market is set to cool even if the MPC keeps interest rates on hold at its next
meeting as potential homebuyers are already struggling to raise the necessary funds.


\"It\'s a given that rates will rise to six per cent soon and we predict that these
rises will continue to 7.5 per cent to combat the effects of inflation.\"

It looks increasingly likely that a hike of 0.25 per cent will be announced -
bringing rates to 5.5 per cent - leading cebr to believe that house price growth
will be further curtailed.

\"The latest evidence to date suggests that the housing market is beginning to slow
gradually - in line with our earlier predictions,\" the firm said in its latest
\'Forecasting Eye\'.

\"We expect that slowdown to sharpen with an almost inevitable interest rate rise in
May.\"

As well as reducing demand for housing, existing homeowners are expected to suffer
as a result of higher interest rates.

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

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