Property prices continue to ease off

Property prices continued to ease off in June as the signs of a slowdown became more evident, a new study has revealed.

The Chesterton meta-index for June, which combines indices from the likes of the Land Registry and the Nationwide Building Society, found that house prices rose by just 0.7 per cent over the course of the month.

Properties at the top end of the market showed the most significant fall, with the top 20 per cent of the market showing price growth of just 11.2 per cent.

This is in relation to a 17.4 per cent year-on-year share of the market in May, the study notes.

"Overall the current figures suggest that the housing market is cooling gradually. The causes of this are difficult to disentangle. In part, it is likely to be the result of [interest rate rises]. There may also have been a temporary affect caused by a glut of supply trying to beat the expected, but now postponed, home information pack introduction.

Rates rose for the fifth time in twelve months yesterday as the Bank of England hiked the base rate to 5.75 per cent.


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