Britons expecting lower house price growth

A new study from propertyfinder.com has revealed that 83 per cent of property buyers and sellers in the UK expect prices to continue to rise, but at five per cent, less than half the current rate of growth.

The survey found that an almost identical proportion of respondents (82 per cent) placed the blame for the slowdown on rising interest rates and the resultant higher borrowing costs, though most acknowledged that market fundamentals remain strong.

Thirty-nine per cent said that a lack of new homes on the market was likely to drive growth in future, with 46 per cent attributing future growth to a lack of sellers.

"The housing market is still in very good health so far. It has moderated in a controlled way and is reacting just as the MPC would have hoped," noted propertyfinder.com chief executive Warren Bright.

"Supply is chronically constrained with too few properties coming onto the market and far too few being built. Inevitably that will support prices over the longer term," Mr Bright continued.

The annualised rate of growth for house prices last month was 11.2 per cent, according to Halifax.


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