Housing market slows

The housing market is growing at its slowest rate for 12 months.

15:03 17 August 2004

House prices rose at their slowest pace for more than a year during the three months to July, a new survey claims.

Research conducted by the Royal Institute of Chartered Surveyors (RICS) found that just three per cent more surveyors reported a rise rather than a fall in prices during the quarter.

The RICS report suggests that rising interest rates are starting to slow down house prices in Britain. The institution said increases in May and June had led to a "significant drop" in the number of people looking to buy and prices in July had seen little change.

The survey shows that prices are currently static in the Midlands and East Anglia, while some areas, such as southern England, recorded falls. The North West, Yorkshire and Humberside and Wales all saw moderate increases, while the only robust price rises were in the North East and Scotland.

RICS spokesman Ian Perry said: "This is a traditionally quiet time of year but still buyers and sellers are showing a noticeable air of caution.

"Unlike last year, the supply of new property coming to the market has remained low and kept market conditions fairly tight, which is a major factor in underpinning prices."

RICS predicts further price falls in parts of London and the South East over the coming months.