Survey shows slowing of house price growth

Posted: 28 Mar 2007 11:44:59 GMT

House price growth slowed in March, according to the latest Nationwide house price survey, suggesting that higher interest rates may be having a dampening effect on the market.

House price growth slowed in March, according to the latest Nationwide house price survey, suggesting that higher interest rates may be having a dampening effect on the market.

Figures from the lender showed that the seasonally-adjusted figure for house prices rose by 0.4 per cent in the month to £177,083, down from a 0.6 per cent rise in February.

Fionnuala Earley, Nationwide's chief economist, said that the figures tallied with other trends that indicated a slowdown.

She said: "Mortgage approvals and buyer enquiries at estate agents have weakened since the start of the year and we expect that this will continue as the dampening effect of the earlier interest rate rises feel through."

The annual rate of house price inflation, based on Nationwide's figures, is now 9.3 per cent.

Other recent studies and surveys have also suggested a slowdown.

Yesterday, figures from the British Banker's Association showed that house purchase approvals in February were down by five per cent on the same time in 2006.


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