Property prices up in August

Posted: 07 Sep 2007 10:51:58 GMT

House prices continued to rise in August, according to the latest house price index.

House prices continued to rise in August, according to the latest house price index.

Figures from Your Move show that prices increased by 0.4 per cent month-on-month, a sign that the market is beginning to slow.

However, the firm points out that this apparent slowdown is nothing to worry about and may benefit homeowners in the long run.

"Five base rate rises this year are clearly having the desired effect," commented David Newnes, managing director of Your Move.

"The holiday season over August usually contributes to a seasonal slowdown. The implementation of Hips has clearly hampered the market a little over the summer months.

"But the flattening off of house prices shouldn't be seen as cause for panic. Rather, it should be a sign of success in inflationary control for the Bank of England. We would therefore urge the MPC [Monetary Policy Committee] not to put rates up any further," he added.

The survey reveals that year-on-year house prices have grown by 6.3 per cent and the average house price is now £182,012.

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