Prices rising but trends show slower growth

House prices continued to rise in August, with a 0.6 per cent rate of growth double that found in July, but underlying trends indicate that the market is now slowing.

That is according to the latest Rightmove House Price Index, which also reported a 12.8 per cent annualised rate of growth in comparison to 10.3 per cent in July.

By contrast, however, prices in London fell by 0.1 per cent this month, suggesting that one of the national market's biggest drivers is now feeling the effects of recent hikes in the base rate of interest.

"This fall is the first we have seen for some time and is an early warning signal that even the buoyant London economy is susceptible to market forces," commented Rightmove commercial director Miles Shipside.

Assetz reported last week that an analysis of the five major house price indices in July resulted in a cumulative annualised rate of inflation of 10.1 per cent.



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