Housing crash ‘unlikely’ to take place

Rising inflation and interest rates are unlikely to cause a crash in the property market, an industry expert has predicted.

According to Property Secrets chief analyst Simon Tweddle "doomsayers" believe increasing house prices and living costs could cause borrowers to struggle with debt management and secured loan repayments, so leading to a "bust in property prices worldwide".

However, Mr Tweddle suggested that although interest rate rises could impact upon buyer affordability there will still be demand for property across Britain.

He said: "Interest rates are rising moderately in most countries, but they are nowhere near the levels to cause serious concern and we don’t predict any major change in the near future."

Earlier this week, the Royal Institution of Chartered Surveyors reported that over the course of April property prices rose for the 18th consecutive month, a statistic which could well increase many homeowners’ secured loan costs.

Spokesperson Ian Perry added that the Bank of England may continue to increase interest rates "as the housing market has not slowed as quickly as expected given the initial round of rate rises".

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