Gabriel Rozenberg
Download 'Too Hot', an exclusive Specials track from iTunes
House prices rose last month at their slowest pace since June, indicating that demand for properties has cooled in response to higher borrowing costs, a study finds today.
Some 28 per cent more members of the Royal Institution of Chartered Surveyors (RICS) said that prices rose last month than fell. That was the weakest such balance in seven months.
Mervyn King, the Bank’s Governor, yesterday welcomed the “straws in the wind” that pointed to steadying prices. “One would like to see house price inflation moderate . . . so any softening would be a welcome development,” he said.
Interest rates, which rose three times between August and January, have taken the momentum out of a market which saw prices rise by almost 10 per cent last year.
However, average stocks of unsold property on surveyors’ books declined further to its lowest level since August 2004, in a sign of the tightness in supply which continues to shore up prices.
RICS said that the strongest house price growth was in London and the South of England, fuelled by the health of the financial services sector.
In Northern Ireland, prices continued to rocket, with a net balance of 95 per cent of surveyors reporting price rises.
Strength last year derived in part from the burgeoning buy-to-let market.
Articles from our sister site WSJ.com:
You may be asked to subscribe to read certain articles
Win a luxury weekend to Newcastle and its neighbour Gateshead, find out more here
Risk, resilience and embracing new technology
Industry sectors news at a glance. Interactive heatmap, video and podcast
Discover the power of collective thinking. Submit a solution and be in with a chance to win a Media Hub Home Entertainment System
The inside track on current trends in the charity, not for profit and social enterprise sectors
Everything the Business Traveller needs to know to make a better trip
Make the most of the summer and enter our fabulous photographic competition, you could win a £5000 holiday
Corsica is an island of beauty and contrast, an ideal holiday destination
Enjoy further reading from Travel to Fashion, Business to Sport, discover more
Shortcuts to help you find sections and articles
The clever way to lease a new car is with Car leasing made simple™
2009
per month on 36-month
Personal Contract Hire (PCH)
2008
42850
Car Insurance
£24,250 - £30,346
MI5
London
£60,000
The Environment Agency
Bristol
Up to £90K
Boots
Midlands
OTE £85k
Credit Protection Association
Nationwide Opportunities
Completely London
Luxury Condo's in Manhattan with NYC views
The best new homes in Wimbledon?
Nationwide
Fabulous Cruise And Cruise & Stay Offers Including Virgin Atlantic Flights Prices Start From Only £699pp!
Last Minute Cruise And Cruise & Stay Offers. Med From £499pp, Caribbean From £699pp!
5 star quality at a 3 star price.
8 fabulous Canadian cities ...you won’t find cheaper
Contact our advertising team for advertising and sponsorship in Times Online, The Times and The Sunday Times, or place your advertisement.
Times Online Services: Dating | Jobs | Property Search | Used Cars | Holidays | Births, Marriages, Deaths | Subscriptions | E-paper
News International associated websites: Globrix Property Search | Property Finder | Milkround
Copyright 2009 Times Newspapers Ltd.
This service is provided on Times Newspapers' standard Terms and Conditions. Please read our Privacy Policy.To inquire about a licence to reproduce material from Times Online, The Times or The Sunday Times, click here.This website is published by a member of the News International Group. News International Limited, 1 Virginia St, London E98 1XY, is the holding company for the News International group and is registered in England No 81701. VAT number GB 243 8054 69.
When supermarket firms are allowed to build new stores they should be compelled to add several floors of flats. This would not only ease the housing situation but provide somewhere for recruits to the store to live. It can happen that an out-of-town store finds it difficult to obtain workers due to transport/labour shortage difficulties so you can solve 2 problems this way!
Mrs. H.Gillard, Penzance, Cornwall
To Peter Carter:
The continuing growth in UK house prices effects everyboby not just teachers. In reality teachers are paid just as much, often more, than their counterparts in junior roles in the private sector. So what makes them special? (Lets not mention the goldplated pensions or holidays). Low cost housing is available, it's just not available in the most desirable suburbs. You should tell these young teachers to moderate unrealistic aspirations and look for property they can afford, instead of inflating their pipe dreams. By the way I only earn 17,500 year. My partner and I are both 25. She earns only slightly more than me. I hope you realise that this figure is lower than the young teachers you think are so hard done by in the property market. We have just bought our first home together and we did it on our own by taking advantage of a stamp duty exempt area, which has new build as well as old council stock. We are happy there; perhaps your young teachers could be too.
Ian , Sharston, Manchester, UK
The continuing growth in the average UK house price is making it virtually impossible for young teachers to be able to afford to buy their own homes, this is a deplorable situation.
As a prominent member of the Education establishment I am calling on this Government to make available low cost housing for the nations teachers.
Peers Carter, Gravesend, Kent