Official figures this morning showed that British house price inflation fell to its lowest rate in almost four years in April, in a further sign that the housing market is stagnating.
Figures from the Office of the Deputy Prime Minister showed that annual house price inflation slowed to 6.9% from 12.6% in March.
This was the lowest since the fourth quarter of 2001, the ODPM said, but added that the weak number was largely due to the timing of Easter this year.
But economists said the figures showed the housing market was cooling much more quickly than previously thought and could encourage the Bank of England to start cutting interest rates this summer, having kept its key rate at 4.75% for the last ten months.
Separate figures showed that prices charged by British factories fell unexpectedly last month, pushed down by falls in furniture prices as well as petrol and alcohol prices.
The Office for National Statistics said output prices fell a non-seasonally adjusted 0.2% in May after a strong 0.7% rise the month before, confounding expectations for a 0.2%. The annual rate of increase slowed to 2.7% in May from 3.3% in April.
The ONS also said input prices unexpectedly rose 0.3% in May after a 0.2% gain in April and compared with forecasts of a 0.5% fall.
That came as oil prices receded in the first half of the month but as home-produced food prices, and prices of imported parts and equipment and fuels climbed. Crude oil prices paid by factories fell 3.1% on the month.
