House price index: Growth slowing

The growth of prices in the housing market is continuing to slow slightly, according to new figures.

Data from the June edition of the Halifax House Price Index reveals that prices saw their second successive monthly increase of less than 0.5 per cent.

Overall, house prices increased by 0.4 per cent over the last month, the study indicates.

Additionally, the house price index for the second quarter of 2007 shows a two per cent rise, which is less than the three per cent increase of the first quarter and the 4.2 per cent jump in the fourth quarter of 2006.

The numbers reveal that Northern Ireland is currently the most expensive part of the UK in which to buy a house, outside of London and the south-east.

Martin Ellis, chief economist at Halifax, commented on the property prices, saying: "These figures indicate that house price inflation is slowing.

"The increases in mortgage rates and the persistence of negative real earnings growth in the early months of 2007 are expected to cause annual house price inflation to slow further over the coming months."

However, a shortage of housing will continue to add support to rising prices, he added.

Other research recently released by Halifax includes data stating that 70 per cent of adults in Britain own homes.


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