House price growth slows
UK house price inflation eased last month amid signs that higher interest rates are beginning to cool the London housing market, according to a new report out today.
The survey from property consultants Hometrack showed prices up an annual 6.4% in June versus a 6.7% increase the month before.
The monthly rise of 0.3% was just half the 0.6% improvement reported in May, with economists attributing the slowdown to the four interest rate hikes since last August.
The Bank of England is widely expected to increase borrowing costs by another quarter point to 5.75% this week, with a rise to 6% by the end of the year a real possibility.
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The number of properties put up for sale in June was twice that of the month before, said Hometrack.
"The growth in supply comes at a time when demand is faltering on the back of recent increases in interest rates and widespread fears of further rate rises to come," said Director of Research at Hometrack Richard Donnell.
In London, demand fell 3.5% versus a national increase of 5%, while price growth in the capital eased from 1.3% in May to 0.7% this time.
