House price inflation eases says Nationwide

Posted: 31 Jan 2007 10:12:14 GMT

House price growth during January was at its lowest point for eight months Nationwide figures have shown, with average increases of just 0.3 per cent over the month

House price growth during January was at its lowest point for eight months Nationwide figures have shown, with average increases of just 0.3 per cent over the month.

The weak growth could indicate that buyers who shrugged off two earlier rate rises may have felt a bite on their spending power after a surprise third increase in January.

"The year started off with a bang as the Bank of England raised interest rates for the third time in six months," said Nationwide chief economist Fionnuala Earley.

"Only time will tell how much the surprise decision will affect sentiment in the housing market, but even before January's rate rise there were some very early signs of cooling."

The survey added that some estate agents had already begun reporting slower demand in December, while new buyer enquiries have fallen for the first time in 19 months.

© Houseladder Ltd