UK house price slowdown confirmed

New figures have revealed that the rate of house price growth in May slowed to its lowest level for over 12 months, corresponding with recent studies which have suggested that a slowdown in price inflation is now coming into effect.

The study from the Royal Institution of Chartered Surveyors found that a significant increase in supply had materialised last month, with the number of homes on the market rising at the fastest rate since the organisation's monthly report began in 1977.

Meanwhile, separate research from Knight Frank has found that even the booming London property market is beginning to fall into line with the rest of the country, with a nine per cent fall in annual price growth for luxury properties predicted for 2007.

"With interest rates expected to rise even higher and some home owners fearing the end of fixed rate deals, affordability conditions are set to worsen across the board and will herald a cooling market," advised Rics spokesman Jeremy Leaf.

The number of surveyors reporting a price increase last month fell to 23.9 per cent from 28.5 per cent in April, the Rics study noted.


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