House prices in Britain rose 1.2% in June, the lowest increase since November, according to the Halifax House Price Index released today, providing further evidence higher interest rates are cooling the market.
The monthly figure echoes surveys from the Nationwide Building Society, estate agents and surveyors released in the past two weeks that paint a picture of moderating house price inflation.
In May, the seasonally-adjusted index, published by the UK's largest mortgage lender, HBOS, rose 2.2% month-on-month, or 20.4% in the three months to May compared with a year earlier.
HBOS said interest rates, which have risen one percentage point since November, were hitting demand. 'This suggests that the recent increases in the cost of borrowing are beginning to curb housing demand,' said Martin Ellis, chief economist at HBOS.
The cooling in the market was partly because an increasing number of first-time buyers are finding themselves priced out of the market, HBOS said.
