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News: Summer slowdown: 'Don't panic'

Fri, 07 Sep 07

House prices are continuing to rise, though the rate of growth has slowed considerably, says estate agent Your Move...

With many lenders reviewing their mortgage rates as higher base rates begin to impact, inflation in the housing market is finally cooling correspondingly. Agreed house prices rose by 0.4% in the last month according to Your Move data.

August agreed prices averaged at £183,012, up just 0.4% from July’s average of £182,438. Year on year, agreed house prices rose at a rate of 6.3% to August 2007 according to Your Move data.

But over the last six months, agreed prices have risen 2.1% from £179,158 in February 2007, an annualised rate of 4.2%. The August monthly increase is in line with this trend with the annualised rate of growth at 4.3%.

YOUR MOVE HOUSING DATA

 

Average Agreed Price in July 2007                               

Average Agreed Price in August 2007                           

Year on Year Agreed House Price Inflation          

Six-month Agreed House Price Inflation             

Month on Month Agreed House Price Inflation     

 

£182,438

£183,012

+ 6.3%

+ 2.1%

 

+ 0.4%

Managing Director of Your Move, David Newnes said, “House price inflation is finally showing real evidence of slowing. Five base rate rises this year are clearly having the desired effect.

“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 not to put rates up any further.”

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