A leading UK building society has suggested that the housing market may finally be showing signs of stalling.
According to Nationwide building society, the three interest rate rises since August last year are beginning to stifle the market.
Fionnuala Earley, chief economist at Nationwide, said that demand from buyers – and consequently demand for mortgages – is “waning”.
Nationwide released its house price monitor this week, which shows that house prices increased again from January to February.
Ms Earley said this is because rate rises have not as yet made a noticeable impact on the market and so not shown up in indicators.
However, she explained that a lack of housing supply was serving to keep house prices high.
Despite this, she predicted that price inflation “will remain firm for a while longer, before gradually easing”.
Recent figures released by the Council of Mortgage Lenders (CML) would seem to back up MS Earley’s predictions.
The CML saw mortgage lending for January stand at £26.8 billion in total, a drop of just under £2 billion on December lending.
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