Housing market shows signs of reawakening as high street sales continue to wobble.
The Bank of England has left interest rate unchanged at 4.5% for the second month running, as fuel costs continued to knock consumer confidence. According to the CBI, high street sales fell at their sharpest rate for 22 months, unmoved by the Bank’s quarter-point cut in August.
In contrast to the retail sector’s unease, the housing market showed signs of perking up in August, with mortgage approvals rising for the first time in 12 months. Some economists believe that a stronger property market could trigger a boost in consumer spending.
The Halifax said that house prices were now rising at 3% a year, up from the 2.5% rate recorded in August.
