UK house prices increase at slower rate
Published On 30 January 2007
UK house prices increased at a slower rate in January, according to figures from the Nationwide.The annual rate of house price inflation fell from December's figure of 10.5 per cent to 9.3 per cent.
The rate of recently agreed sales, the length of time properties were spending on the market and the speed of buyer enquiries were among other factors indicating a potential downturn, according to the Nationwide.
Fionnuala Earley, Nationwide's chief economist, said: "It is likely that we will now begin to see a weakening in demand as a result of stretched affordability and rising interest rates."
"This would bring our expectation of house price growth in 2007 into the lower end of our five to eight per cent forecast," she added.
The bank said that the slowdown is likely a result of the three successive interest rate hikes since August 2006.
In January a snap decision from the bank of England left the rate standing at 5.25 per cent. Meanwhile, the average house price in the UK is £173,225.
