House price growth slows in May

House price growth slowed to 0.5 per cent in May, with annual price increases now standing at 8.5 per cent, the Financial Times (FT) House Price Index has revealed.

The survey, carried out by Acadametrics and based on existing Land Registry data, found that the average house price stood at £220,319 in May up by £1,176 on April's figure.

House price inflation in the north of England fell by 0.2 per cent in both March and April, the study indicates, though London prices rose by 0.8 per cent in March and 1.2 per cent in April.

Furthermore, annual price inflation in the capital has almost doubled in just 11 months, standing at 14.0 per cent in April compared to 7.3 per cent in May 2006.

"Market indicators from across the property purchase process (enquiries, mortgage approvals, transactions) show clear evidence of the slow down and support our assessment of the flattening price trend," commented Dr Peter Williams of Acadametrics.

However, separate figures from the Department for Communities and Local Government have reported an increase in annual house price inflation for April, rising to 11.3 per cent from 10.9 per cent in March.


© Adfero Ltd