House price growth may herald slowdown says survey

Posted: 30 Oct 2006 12:09:24 GMT

Recent increases in UK property prices may be the last burst of growth heralding a slowdown, new research from Hometrack has suggested

Recent increases in UK property prices may be the last burst of growth heralding a slowdown, new research from Hometrack has suggested.

Property price growth has hit a two year high of 4.9 per cent following strong rises in October said Hometrack, but added that there were some signs of weakening.

It pointed to the distorting effect of high London demand on national figures and said that on its indicators, only a quarter of the country had experienced growth over 2007.

"House prices look likely to end the year up by around five per cent with average growth in London likely to be closer to 12 per cent", ,” Hometrack's director of research, Richard Donnell, commented.

"However, there are clear signs that the momentum in the London market is starting to slow and this is likely to continue in the run-up to the new year.

"The reality for many homeowners is that house price growth across large swathes of the country has been extremely modest over the last 12 months," he added.

© Houseladder Ltd