Price growth is on a softening trend and we continue to believe that the outlook for the housing market over the medium term is one of flat to falling prices.
The strengthening of both the retail sector over Christmas and the housing market over recent months should limit the opposition to keeping rates on hold next week.
An improvement in the outlook for the services sector, a stronger housing market and expectations of a reasonable Christmas for retailers should be enough to keep the Bank of England on hold (in January).
The general picture from the housing market has not changed,
We need housing like this in the City of Bangs. Any city that is growing needs residential development.
Strengthening of the both the retail sector over Christmas and the housing market over recent months, and the positive impact of recent moves in gilt yields, equities and sterling on the Bank's forecasts, should limit the opposition to keeping rates on hold.
The January numbers looked overly weak, in light of recent developments in the housing market so some recovery in these figures was to be expected.
It looks like the decline has been generated largely because of excess optimism in the housing construction market a month ago which was not sustained.