House prices almost unchanged in July
Figures released this morning have revealed that UK house prices grew at their slowest pace in 15 months in July, providing further evidence that higher interest rates are hitting homebuyers.
The Nationwide Building Society said prices rose just 0.1% this month, dragging the annual rate down to 9.9% from 11.1% in June. Experts had forecast a 0.5% monthly increase.
The cost of the average home is now £184,270 following July's improvement and last month's 1.1% advance.
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"The sharp slowdown in July's house-price numbers could show that potential homebuyers are thinking twice about overstretching themselves in a higher interest-rate environment,'' said Nationwide's chief economist Fionnuala Earley.
The Bank of England has raised interest rates five times since last August to 5.75%, with many analysts expecting an increase to 6% by the end of the year.
"The three-month on three-month rate of growth-often a better indicator of the underlying trend of house price inflation-slowed to 2.0% and resumed the downward path that had been interrupted in June," she added.
