Money News
Latest data from the Halifax shows house prices rose by 1.1% in April, the smallest monthly increase so far this year and the second lowest since July 2006. Meanwhile, the annual rate of house price growth fell slightly to 10.9% from 11.1% in March. The standardised average house price now stands at a seasonally adjusted £196,745.
Commenting on the figures, Martin Ellis, chief economist, said there is accumulating evidence of a slight easing of conditions in the housing market with further signs of moderation in both demand and activity in the past month.
"Demand remains healthy which, together with tight supply, continues to push up prices. Good economic growth and a strong labour market will continue to support healthy housing demand. Negative real earnings growth and the increase in interest rates since last August, however, are expected to exert increasing pressure on householders' finances, resulting in slowdown in house price inflation over the coming months," he adds.
Signs that housing market activity is easing can be seen in the number of mortgage approvals to fund house purchase. Bank of England figures show they fell from a seasonally adjusted 118,000 in February to 113,000 in March, the lowest level since April 2006. Overall, approvals in the first three months of 2007 were 5% lower than in the final quarter of 2006.
10 May 2007 © Moneyextra.com
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