House price growth slows by half

Posted: 02 Jul 2007 14:44:05 GMT

The growth in house prices has slowed by half in the space of a month, the latest house price figures for England and Wales suggest.

The growth in house prices has slowed by half in the space of a month, the latest house price figures for England and Wales suggest.

The cost of the average home rose by just 0.3 per cent in June, the latest survey from Home track has revealed, down from the 0.6 per cent growth rate seen in May.

Commenting on the figures, Richard Donnell, Home track's director of research, said that the slowing of the market was do to a rise in supply, relative to demand.

"The growth in supply comes at a time when demand is faltering on the back of recent increases in interest rates and widespread fears of further rate rises to come," he said.

"With much of the new supply coming to the market from discretionary sellers looking to achieve close to the full asking price, it seems likely that the average time to sell property will increase in the months ahead with a slowdown in sales volumes and a switch to a buyers' market."

© Houseladder Ltd