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Slowdown in property price increases

23 June 2003
A new survey has found a gradual slowdown in the annual rate of UK house price increases.

Whilst prices continued to rise in June (1.4 per cent on average), property website found more homes were coming off the market than going on.

The annual rate of house price inflation fell for the sixth consecutive month to 14 per cent from 15.6 per cent in the 12 months to May.

Rightmove's commercial director, Miles Shipside said: 'Activity levels are far below what we were seeing last year. We're in a transitional phase in the market as prices cool, buyers bide their time and stock levels start to stabilise.'

The once mixed picture of prices across the UK is starting to straighten out. House prices in London fell 0.2 per cent in June with two thirds of the 32 boroughs registering falls, some at 4.5 per cent. House prices rose in the capital 2.5 per cent in June year on year.

Falls were also seen for the first time in Yorkshire and Humberside. Prices fell by 1.2 per cent. Rightmove suggested this was noteworthy - as downward pressure on prices in southern England could spread northwards.

Sir Edward George, the retiring Bank of England governor said the risk of a collapse in the market was slight.

Speaking on BBC's Breakfast With Frost, he said: 'We don't think there is a real risk of a crash, a fall in the level of house prices across the country as a whole. But we do see a continued moderation to a stabilisation possibly over the next couple a years.'