Price growth up slightly in August

House prices rose by 0.2 per cent in August, the Land Registry has advised, an increase on growth seen in July but nonetheless one that was taken as a sign of continued slowdown by analysts.

The Land Registry noted that it was again London pushing up prices, with the UK's annual price inflation of 9.4 per cent bolstered by the 16.7 per cent increase seen in the capital over the same period.

Analysts at Capital Economics suggested that the weaker growth indicated that a softening in the market was now very much in force.

"[The] growth rate conceals the noticeably worse picture facing several regions, where house prices fell over the month. With lending criteria tightening, the outlook for the housing market is deteriorating," the firm commented.

However, this week's Nationwide House Price Index would seem to contradict such claims, with the study showing that price growth accelerated again in September, up to 0.7 per cent.


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