The five consecutive increases in U.K. real estate base rates in 2004 has finally had an impact on home prices, which recently saw negative month-to-month price changes. According to analysts at the Royal Bank of Scotland, despite this slowdown, levels seem to be on par with the national level.

Market data from the RICS house price survey of surveyors indicating a rise in prices, minus those reporting a fall, reported levels as recovered to minus 37 in December from minus 47 in November. Analysts at JPMorgan Securities report the results indicate that home prices are showing resistance to a further decline but the sales to stocks ratio was down to 30.6%, suggesting that the market remains sluggish.

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