House price growth eases
New figures released by Nationwide today have shown stronger than expected UK house price growth during August, although the annual increase came in at a five month low.
House prices were up 0.6% on the previous month, according to the building society, taking the average price up to £183,898, a little more than the 0.5% economists had predicted.
But annual house price inflation now stands at 9.6%, down from 9.9% in July and June's peak of 11.1%.
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"There are now clearer signs of slower demand in the market," said Nationwide's chief economist Fionnuala Earley.
She still thinks house price growth for 2007 will come in at the middle of its range of between 5 and 8% and reckons UK interest rates will stay at 5.75% for now.
The Bank of England has increased borrowing costs five times since August last year.
