House price growth ‘stalls’

House price growth levelled off in the last month, according to new figures from Nationwide.

Publishing the results of its monthly house price survey today, the building society suggested that the increase in interest rates to six per cent is still a strong possibility, dampening the performance of the market.

Commenting on the figures, Nationwide’s chief economist Fionnuala Earley said: "After surprisingly picking up steam in June, house prices were almost unchanged in July and their underlying trend growth resumed a downward path."

She added that average house prices across the UK now stand at £184,270 – after demonstrating the slowest level of growth since April 2006.

Responding to the news, the Royal Institution of Chartered Surveyors asserted that with interest rates finally impacting upon buyer behaviour, a sluggish period is expected until Christmas – although a decline in prices is not forecast.