A survey today from Hometrack suggested a further cooling in the housing market with prices up just 0.3% in June, half the pace of the previous month and the third successive slowdown.
Hometrack said house prices were pressured by a surge in the number of properties coming on to the market last month, reported to have doubled from May, and slowing demand.
The London market was said to have lost momentum, although prices continued to rise above the national average.
"Rising affordability pressures will make it ever more difficult for first-time buyers to get into the housing market and for existing house owners to trade up," said Howard Archer at Global Insight.
"In addition, the very real possibility that interest rates could reach 6.0% before the end of 2007 is likely to act as a significant deterrent to many potential house buyers."
Hometrack survey shows third successive slowdown
Posted - 03 July 2007 : 10:59:20
