Figures from Britain's biggest mortgage lender show that the country's housing market continued to show signs of slowing down during July.
Prices rising by just 1.3% in the month, after a 1.2% increase seen during June. Both figures are well below the average monthly gain of more than 2% reported during the previous six months, according to Halifax.
The group said recent interest rate increases and the problems faced by first-time buyers were likely to temper house price growth over the rest of 2004 and 2005.
But it added that the strong economy, healthy labour market, low interest rates and long-term shortages in the number of homes available should continue to underpin the market.
