Halifax: house price growth slows to 0.3%

Posted: 07 Jun 2007 11:10:29 GMT

House prices rose by 0.3 per cent in May, the latest figures from Halifax have revealed - the slowest monthly increase so far this year.

House prices rose by 0.3 per cent in May, the latest figures from Halifax have revealed - the slowest monthly increase so far this year.

The annual rate of house price inflation has dropped to 10.6 per cent as a result of the slowdown, the data from Halifax's house price survey shows.

The findings add further weight to the view that the property market is beginning to slow, with the Council of Mortgage Lenders and the Bank of England also claiming that mortgage approval rates have also slowed in recent weeks.

"This is the smallest increase so far this year and the third successive easing in the monthly growth rate," commented Martin Ellis, Halifax's chief economist.

"The recent slowing in monthly house price inflation, together with further evidence of moderation in housing market activity, suggests that the interest rate rises since last summer are having an impact on the market."

The Bank of England is today expected to keep interest rates at 5.5 per cent, although another rate rise is anticipated in July.

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