House prices continue climbing

Despite rising interest rates and signs of slowing in the market, house prices continued to climb in July, rising by an average of £679 on a monthly basis, according to newly released figures.

Research conducted for the Financial Times shows that the average monthly increase in property prices stood at 0.3 per cent last month, bringing the typical home to a value of £223,035.

On an annual basis, prices in England and Wales increased by nine per cent between July 2006 and this year, according to the Academetrics study.

When the market in the capital is removed from the figures, however, the annual rate of inflation falls to 7.3 per cent, illustrating the strength of the London property sector.

Peter Williams of Acadametrics said the figures represented a reversion to the "broad pattern of stability" that has been visible in past months.

He added: "The expectation of a slowing market as the year goes on remains given that the effect of successive interest rate increases continues to work its way through the system.

"The Bank's recent decision to hold on rates was welcome not least given the newly advised increased incidence of arrears and possessions and the continued uncertainty created by the difficulties in the US sub-prime market."

Related Articles