House price growth slows

Posted: 19 Feb 2007 10:42:49 GMT

Annual house price growth fell to its lowest point for 18 months during February Rightmove has claimed, down two percentage points to 11.5 per cent

Annual house price growth fell to its lowest point for 18 months during February Rightmove has claimed, down two percentage points to 11.5 per cent.

The average house price in England and Wales rose 0.9 per cent to £224,802 over the month, making it the slowest February since 2002.

In the past five years since the website started conducting its monthly surveys, February has always shown at least two per cent price growth on January figures.

Estate agents have contradicted suggestions that the market is slowing however, saying that activity is still high and that the average sale time has fallen from 88 to 78 days.

The apparent contradiction could be due to the surprise interest rate rise in January knocking the usual sense of new year optimism in the market, said Rightmove.

"The shock tactic of one unexpected rate rise early in the year appears to have had the desired effect," said Miles Shipside of Rightmove.

"February price rises are normally two to three times higher than we have measured this month.

"We are at a crossroads, and the path taken by those in charge of interest rate policy will dictate the direction of the housing market in 2007."

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