The increase in house prices is slowing across the country, with prices barely moving in June.
This is according to new figures from Rightmove, which suggest that prices rose by just £272 during the month – an increase of just 0.1 per cent.
The slowdown has been attributed to a dramatic increase in the number of properties coming on the market. According to Rightmove stock increased by 20 per cent, contributing to a 0.5 per cent drop in prices in London.
Rightmove director Miles Shipside said: “While the jump in property supply is welcome and much needed, it should be noted that average stock levels per estate agency branch are still well below those of last year, with shortages still pushing up prices in popular locations.
“While the legacy of rises in central London continues to ripple out to its better-value commuter belt, fuelling price increases in all southern regions, London itself is now marking time. It’s an example to the rest of the country of what happens when affordability and common sense get stretched too far. Through luck or judgement it appears that the timing of the Mortgage Market Review, more property for sale in all regions, and a tail-off of pent-up buyer demand are alleviating some of the upwards price pressure.
The slowdown also follows suggestions that the Bank of England could place further restrictions on loan-to-income ratios. Last week Vince Cable reiterated his desire that loans should be capped at three and a half times the borrower’s income, and has asked individual banks to limit their lending accordingly.
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