House price growth eases to nine-month low

Posted: 15 Mar 2007 10:02:52 GMT

House price growth eased to levels not seen since May of last year during February, the Royal Institution of Chartered Surveyors (Rics) has said

House price growth eased to levels not seen since May of last year during February, the Royal Institution of Chartered Surveyors (Rics) has said.

A poll of surveyors showed that a balance of 24 per cent of the profession reported rising house prices, down four per cent from January.

The institution also said that affordability had worsened following three interest rate rises since August, with 19 per cent more surveyors reporting a fall in new-buyer enquiries.

"The interest rate rises have started to worry would-be buyers with many concerned that they will be unable to meet mortgage repayments," said Ian Perry of Rics.

"Affordability for many will continue to decrease in the coming months as the January rise, and further rises take effect.

"Bullish market conditions still prevail in the south-east, Scotland and Northern Ireland but at the same time that prices have stagnated in the Midlands."

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