House prices to stagnate in 2008

Britain’s number one mortgage lender, the Halifax is predicting that the property market will stagnate in 2008 even if the Bank of England cuts the base rate to 5%.  This is good news for home owners in comparison to other predictions of falls of 10 to 15 percent next year.  But not so good for people still struggling to get on the property ladder.  A report for the global finance monitor said that house prices in the UK have soared in relation to incomes and now stands at about 9x annual average earnings.  Up from about 5x in 2001.