House prices in January stayed firm, despite average house prices rising by 0.7 per cent during last month. One expert is claiming that the market is now beginning to slow down.
The latest house price index produced by Acadametrics on behalf of the Financial Times, revealed that annual house price inflation stayed at 6.9 per cent, the same level as December 2006.
Peter Williams, chairman of Acadametrics, said, "Monthly house price growth at 0.7% and annual growth at 6.9% are both in line with the December figures and support the view that nationally house prices have reached a plateau. Prices in London and the South of England continue to have a large impact on overall performance of the market but price increases in some regions are now quite muted.
"There is some evidence to suggest that the three rates rise since August 2006 is impacting upon the market and there is an expectation that price rises will moderate during the year. The market in London will probably be slower to react as demand continues to outstrip supply. For the year 2006, the FT index shows that house prices overall rose by just under 7% a significantly lower figure than the 9.5% used by the Bank in its own deliberations.
"In the last 3 months the regional markets in England and Wales have experienced an average growth rate that is either at or below the national rate of 7%, whilst the annual rate in London, although having fallen slightly, still stands at 10%. This performance alongside interest rate increases will impact upon expectations in 2007."
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House prices hold firm in January
Mon, 12 Feb 2007
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