Price growth halves

Posted: 12 Jul 2007 16:17:43 GMT

New figures show that house price growth has slowed to half the pace of the previous month.

New figures show that house price growth has slowed to half the pace of the previous month.

The Royal Institute of Chartered Surveyors (Rics) has released statistics which show weakened demand and rising interest rates are taking affect.

Although growth slowed, house prices actually rose for the 20th consecutive month, with London, Scotland and Northern Ireland all buoyant.

Rics says that new buyer enquiries have fallen at their fastest rate for five months, while instructions to sell also plummeted.

"House prices have finally started to cool significantly for the first time since the recent mini boom in the housing market got underway in 2006," said Ian Perry from Rics.

"Interest rate hikes have begun to affect the psychology of the market with potential new buyers starting to think twice before buying a home.

"The July rate increase may not mark the peak of the current interest rate cycle and earlier rate rises have yet to fully filter through. A softer landing for the housing market is in store as we move into the autumn," he added.

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