Imparting momentum

Gordon Brown is to attempt to get the UK housing market to improve

The Prime Minister's current priority is to lead Britain throught the crisis that is currently affecting the UK housing market. This is not going to be easy, as high inflationary pressure is preventing Merbyn King, the Governor of the Bank of England from cutting interest rates. Without a cut in rates, mortgages, both existing and new, will remain unaffordable.

The US sub-prime woes that began around 18 months ago are being felt strongly now, as the market in property has fallen. What's unclear is how long the current situation will last. Analysts predicting an early recovery seem to have changed their minds in recent weeks, and with accelerating falls in the house prices, the market doesn't show any sign of stabilising just yet.