02-07-2007
Hometrack warns of slowing house price increases
A new housing market survey suggests that property prices may have peaked at last.
According to the June Hometrack property report, average house prices rose by just 0.3 per cent last month - half the rate of increase for May.
Rising interest rates and a change in prevailing expectations about their future direction has led to a significant cooling, the survey claims.
In London, the slowdown was even more marked, with the average price rising by 0.7 per cent compared to 1.3 per cent in May.
The Hometrack survey found that house prices rose in just 28 per cent of postcode areas in England and Wales, compared to 44 per cent in April.
Richard Donnell, Hometrack's director of research, warned: "It seems likely that the average time to sell property will increase in the months ahead with a slowdown in sales volumes and a switch to a 'buyers' market'."
This new survey contradicts last week's Nationwide report, which put the average rate of increase for June at 1.1 per cent.
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