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Thursday 4th February 2010
House prices growth slowing: Survey
House prices rose for the seventh month in a row during January but the rate at which they are increasing slowed, figures have shown.
The average cost of a UK home climbed by 0.6% during the month to £169,777, Halifax said - 9.9% higher than when prices hit their trough in April last year.
But the increase was the lowest in the past six months, when monthly gains have averaged 1.1%, building on previous evidence that the recent strong recovery may be running out of steam.
Figures released by the Bank of England earlier this week showed that the number of mortgages approved for house purchase fell in December for the first time in 13 months.
Property intelligence group Hometrack also reported a drop in both buyers and sellers in January, while it said the number of sales agreed had also fallen during the month.
The data prompted economists to speculate that the recent recovery in activity levels in the market may be easing.
Martin Ellis, Halifax housing economist, said: "The marked reduction in interest rates over the past 15 months has, from a low base, boosted housing demand from those with a sufficient deposit to enter the market.
"Increased demand has combined with a low supply of properties available for sale to push up prices.
"There are some signs that more people are putting their homes on the market. A further increase in the supply of property is possible over the coming months, which would help to curb upward pressure on prices."
He said overall he expected house prices to be flat in 2010.
Source: Press Association