UK House Price Inflation slowing

The mortgage lender, the Halifax, said that UK house prices rose by 0,4% in June 2007.

The Guardian reported the chief economist of the Halifax as saying that June 2007 was the second successive monthly rise of less than 0,5% and expects the slowdown to continue. He said, nonetheless that solid economic fundamentals and a shortage of housing supply will continue to support house prices.

The Halifax reported a 10,7% increase in the cost of a new home over the past year, taking the average house price in the UK to more than £197 000. Figures from the Department for Communities and Local Government puts the average price of a home in London at £320 000.

Meanwhile, the Bank of England has increased interest rates in July to 5,75% in an attempt to bring inflation under control.

Contents with thanks to lawfirm, Breytenbachs.