MPC member sees 'resilient market'

Despite widespread predictions to the contrary, a member of the influential monetary policy committee has opined that the recent chaos in the credit industry will not bring about a crash in the property market.

Kate Barker stated that she does not think that the credit carnage will even result in a slowdown of the long-time upward mobility of house prices in the UK.

She said that the volatile credit market will not be a "trigger which significantly alters previous expectations of continued robust house price growth".

While making a speech in Southampton, Ms Barker stated: "There was little deterioration in consumer confidence in September.

"Retail sales volumes have remained strong throughout the third quarter, although discounting meant that retail values grew only weakly."

The monetary policy committee is the nine-member team that decides every month whether or not to lower, raise or leave the base interest rate the same.

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