Booming growth in house prices is set for a sharp slowdown during the next two years, the Bank of England has forecast.
Prices may well continue to rise strongly in the near term, underpinning strong growth in consumer spending, the Bank's quarterly inflation report said.
But spending will ease as growth in disposable income moderates and house price inflation slows, the Bank said.
Bank of England governor Mervyn King said: "We certainly would expect some slowing in the rate of house price inflation."
Thursday May 13, 2004
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