
Nicholas Ayre of UK buying agents Home Fusion said: “If ever there were a disconnect between house prices and the economy then surely this is it.
“For house prices to have risen in July and over the three months leading up to it is incongruous given the state of the domestic and global economy.”
He claimed that the Halifax is “optimistic” when it says that low rates and a slowly improving economy will support demand.
Mr Ayre said: “We are on the verge of global meltdown and so the ongoing growth of the UK economy is open to question.
“The overall stagnation in prices we have seen over the past year or so may soon come to an end as global forces cause the market to unravel. Even London, which has defied market conditions over the past year, could come under severe pressure given the nature of the crisis unfolding.
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