Darling says housing Market will slow further

Published 08th Mar 2008

LONDON (Reuters) - The housing market is cooling and will slow further this year but is fundamentally strong, Chancellor Alistair Darling said on Thursday.

"Yes it's true that house prices are slowing down, but this is on the back of many years when house prices have been growing at 10 percent or even more in some parts of the country for many years," Darling told parliament.

"I believe the housing market in this country, although it will slow down, is fundamentally strong."

Darling also told lawmakers that the Bank of England was keeping careful eye on the rates at which banks are lending money to each other, given worries over lending conditions in financial markets.

"In relation to the spread of interest rates -- the Libor rate -- that is of course something the Bank of England keeps under constant review," Darling told parliament.

Darling added the government was confident that its nationalisation of mortgage lender Northern Rock would not contravene European Union state aid rules.

Source: ' Reuters '

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