House price growth cooling says Rics

Posted: 18 Jan 2007 10:26:14 GMT

House price growth began to slow in December say new figures from the Royal Institution of Chartered Surveyors (Rics).

House price growth began to slow in December say new figures from the Royal Institution of Chartered Surveyors (Rics).

Following similar recent figures from the Financial Times Property Index, the Rics survey is a further sign that the red-hot 2006 market is coming off the boil.

Over the month, 37 per cent more surveyors reported rising than a fall in house prices, compared to 37 per cent during November.

Rics said that the easing, the first since 2004, indicated that the November rate rise was beginning to have a cooling effect.

"Interest rate rises have started to cool the housing market and last week's rise will have a further impact, but the market remains strong," said Ian Perry of Rics.

"However, the rate rise will do nothing to aid home owners struggling with affordability conditions with more repossessions looming on the horizon."

The number of completed sales during December rose to its highest monthly figure since August 2004 however, suggesting that hunger for housing investment is undimmed.

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