Jan. 24 (Bloomberg) -- Bank of England policy maker Kate Barker said house prices are likely to continue falling, though the effect on consumer spending won't be as big as in the past.

House prices are more likely to fall than to rise, Barker said in a speech at a conference organized by the Institute of Economic Affairs at Bloomberg's London headquarters. She said other assets such as the pound's value against the dollar were equally important to the development of the British economy.

``Past experience suggests that house-price movements in one direction over a quarter are more often than not followed by a further change in the same direction,'' Barker said.

Britain's five-year property market boom came to an end in the second half of last year after the Bank of England boosted its benchmark interest rate to 4.75 percent, the highest in three years.

To contact the reporter on this story: Gonzalo Vina in London at gvina@bloomberg.net.

Last Updated: January 24, 2005 05:54 EST