Summer slowdown for property market
Posted: 14 Jul 2006 10:37:32 GMT
A new report based on the six major UK house price indices has concluded that the market is beginning to slow.
Annualised house price growth in the 12 months to June 2006 was 6.74 per cent, rising from 6.52 per cent in May and from 4.32 per cent at the beginning of the year.
Despite this, a new report from property investment company Assetz reveals that strong price rises are expected to taper off in the months to come.
House sellers received an average of £189,408 for their properties in June in comparison to £189,317 in May, but affordability constraints are beginning to take effect in London in particular.
Stuart Law, managing director of Assetz, said: "I am seeing no big surprises from the housing market this summer. A strong performance in the first six months is now beginning to slow, resulting in a confident five to seven per cent growth by the end of the year."
While the market may be set to slow a little through the summer months, house prices are still more than £10,000 higher than they were in June 2005, when the average property was valued at £179,341.