Asking price growth slows as interest rates bite

The average asking price for a UK home rose by just 0.3 per cent in July as recent counter-inflationary measures take hold of the property market, new research has found.

Rightmove has advised that the annual rate of asking price inflation now stands at 10.3 per cent, down from 13.2 per cent in June, which also experienced a higher monthly growth rate (0.8 per cent).

Prices in London have continued to force many homeowners to look elsewhere, however, with asking prices in the capital rising almost twice as fast as any other part of the country.

"Shortages of supply will remain more acute in the capital, as suitable building land is harder to come by and demand will continue to grow as the City strives to become the financial capital of the world. The consequent upwards pressure on prices can be absorbed by highly paid City workers, but it exacerbates the existing problems," commented Miles Shipside of Rightmove.

Lower price growth means that buyers can now start to exert a measure of control over the market, the Observer's Lisa Bachelor advised this weekend.


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