House price growth 'still slowing'

News Category: Industry News

House price growth continued to slow in August, suggesting that landlords could add to their portfolios relatively cheaply.

Figures published by Rightmove show that house prices in the UK rose by just 0.6 per cent in August. This compares to a 0.3 per cent increase in the previous month and means that the typical home in the UK now costs £241,474.

"This is the first time for over a year and a half that we have seen four consecutive months of such moderate increases," explained Rightmove commercial director Miles Shipside.

"This much slower rate is consistent with prices and the market starting to adjust to the increased costs of homeownership. It finally paves the way for a return to a sustainable market without the need for further interest rate rises, though many buyers will still face affordability problems."

The figures also showed that house prices in London dipped for the first time in a year - dropping by 0.1 per cent.

Recently, Ricsreported that uncertainty about interest rates and house prices would encourage people, and especially first-time buyers, to rent for longer.

"With interest rates perched at 5.75 per cent and a jump to six per cent a strong possibility, aspiring first-time-buyers are continuing to rent until the market trend becomes clearer," explained Rics spokesman Jeremy Leaf.