House price growth continues to slow

House prices in England and Wales are growing at their lowest rate since July 2006, according to the Land Registry.

The lastest Land Registry House Price Index shows the average house price in England and Wales grew by 0.1 % in July, bringing the average house price to £181,460.

The Capital saw the biggest price rises, with the average property price in London growing by 1% to £342,936.

On an annual basis, house prices grew by 8.8% across England and Wales, and London saw prices increase by 10.5%.

Commenting on the latest figures, David Stubbs, chief economist at the Royal Institute for Chartered Surveyors, says: "The housing slowdown continues to accelerate as homeowners and prospective buyers deal with the impact of five interest rate increases since last August, and the most stretched affordability conditions for more than 15 years.”

A further interest rate rise is expected before the end of the year, with some analysts expecting a rise at the beginning of September, in order to curb inflation and consumer spending.

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