House price growth 'slows down in June'House price growth 'slows down in June'
House prices rose 0.4 per cent in June, the second month in a row when inflation grew less than 0.5 per cent, according to the Halifax's latest property survey.
Figures from Halifax show that annual inflation climbed to 10.7 per cent, bringing the average price of a property last month to £197,461.
Overall, house prices grew by two per cent in the second quarter of 2007, less than the three per cent increase in the first quarter and well down on the 4.2 per cent rise in the final quarter of last year.
"The increases in mortgage rates and the persistence of negative real earnings growth […] are expected to cause annual house price inflation to slow further over the coming months," said Halifax chief economist Martin Ellis.
"Solid economic fundamentals and a shortage of housing supply will, nonetheless, continue to support house prices."
Commenting on the figures, the Royal Institution of Chartered Surveyors (Rics) said the summer typically sees a pick up in housing activity.
Rics also said that despite a slight slowdown in the housing market, affordability concerns for first-time buyers are still a major issue.