From: Property Secrets UK newsletter, 5^th November 2003

Speculation is rife that tomorrow the Bank of England will announce a rise in the base rate – the first increase since February 2000. And, according to specialist property website www.propertysecrets.net – if it does go ahead, this will be great news for all property investors!

Property and finance expert Neil Lewis from the site says: "We welcome the 'shock' news that an interest rate increase is likely – it will help to cool and calm down the property market. Currently, property values (which showed an annual increase of 18% to September ’03) are near to the boom - and potential bust - 25 to 30% level.

"In 2002, property values increased by an average of about 25% (down from a peak of 30%), and property investors were predicting - and hoping for - a good steady growth of 10% in 2003, thus keeping the housing market stable.

"An increase in interest rates will slightly lower the short term growth of property values, which is what we want. After all, investors look to hold property long term – as that's where profits are made."