Price growth continues in spite of rate hikes

The annual rate of price growth in the UK property market continues to run at levels seen earlier this year despite three interest rate rises since January, the FT House Price Index has revealed.

However, analysts from the firm that conducted the research, Acadametrics, advised that the effects of such increases had perhaps not yet filtered through.

Price growth in July was 0.3 per cent, the index reports, with annual growth in the 12 months up to that period standing at nine per cent.
Dr Peter Williams, chairman of Acadametrics, said that the figures had reverted to "the broad pattern of stability which we have been reporting for several months".

"The Bank's recent decision to hold on rates was welcome not least given the newly advised increased incidence of arrears and possessions and the continued uncertainty created by the difficulties in the US sub-prime market," Dr Williams added.

By contrast, research from Hometrack published last month found that the rate of growth in the market for July was the slowest since January.



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