No sign of any drop in property prices. Bloxham Stockbrokers believes the decline in the increase in house prices is a lull, predicting some acceleration once the mortgage interest rate reductions take effect.

Over the next five years, the broker suggests prices will increase at an average rate of between 10 per cent and 15 per cent.

The Bacon report on the housing market will help cap property prices but much will depend on what happens to interest rates after European Monetary Union.

If things do not go according to plan, and rates are pushed upwards, Bloxham warns will may be hit and property prices will fall. But new measures should help free more land for house development, which is probably the single most important factor if house prices are to be kept at an acceptable level over the longer term.