House price growth set to slow
Published: 23-Jul-2007
Recent interest rate rises are set to take their toll on the rate of housing market growth in the UK, according to a new report.
Rightmove's House Price Index has revealed that the national average asking price grew by just 0.3 per cent between June and July 2007.
This is the lowest monthly increase recorded this year, down from the 0.8 per cent increase the previous month.
According to the index, the annual rate of growth also declined, reaching 10.3 per cent in July compared to 13.2 per cent in June of this year.
"This is further evidence that the 'mini boom' is coming to an end," said Rightmove commercial director Miles Shipside, adding that an employment decline would further impact the market.
"Depending on local supply and demand, sellers are going to have to duck and weave with their asking prices, especially if there is another rise in interest rates."
The UK average asking price reached £240,001 in July, up from £239,317 the month previously.
Interest rates are likely to increase at least once more to six per cent, possibly as early as next month, before stabilising, according to the latest Ernst & Young Item Club report.
