How rising interest rates sent the UK housing market into reverse
by Larry Elliott from on (#69BCR)
An end to ultra-low rates mean borrowers can only afford smaller mortgages
Since the turn of the year the news on the economy has been less bad than expected. Growth has been a bit stronger, spending in the shops a touch higher, business and consumer confidence have both picked up.
There has, however, been one big exception to this trend - the state of the housing market. The Nationwide building society reported on Wednesday that prices were down for a sixth month in a row in February, leading to a 1.1% annual drop in property values.
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