Property price growth eases off in June

House price inflation rose by 0.3 per cent in June as the property market showed signs of cooling, it has been revealed.

The increase was just half of May's 0.6 per cent figure, research from Hometrack has advised, as higher interest rates began to take effect.

An increase in supply was also responsible for the fall in price growth, with the number of homes put up for sale in June double that reported in May.

"The growth in supply comes at a time when demand is faltering on the back of recent increases in interest rates and widespread fears of further rate rises to come," said Richard Donnell, Hometrack director of research.

Housing market sentiment appears to be turning with buyers likely to become increasingly price sensitive over the second half of the year," Mr Donnell added.

However, the figures contrast with last week's Nationwide house price index, which found that house price growth continued to strengthen last month.


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