DCLG house price growth slows
Today the Department of Communities and Local Government (DCLG) released their House Price Index, showing a slow down in annual house price growth in March. Nicholas Leeming, director of Propertyfinder.com, commented onthe findings:
The housing market is not in trouble, but today’s data serves as a timely reminder that we are still experiencing the effects of the three rate rises between August and January. March DCLG figures show a gradual slowing in house price growth, even before another burden was placed on home owners last week. The latest rise means an average homebuyer is facing nearly £1,700 extra in mortgage repayments than a year ago and this is certain to have a further cooling effect. The housing market is reacting slowly but surely, another 0.25% hike this summer would be heavy handed to say the least. If the MPC acts again before the effects of four rate increases have been fully absorbed, the housing market could be the victim of fools rushing in.
