FT: House price growth stays put

Friday, 9 February 2007 12:00 AM

Predictions that house price growth had hit a plateau were confirmed in January as house prices rose 0.7 per cent over the month.

That is according to the FT House Price Index, which finds annual house price inflation has remained at 6.9 per cent, the same level as December 2006.

This puts the average price of a UK property at £213,097 for January.

Peter Williams, chairman of Acadametrics, who conducted the survey, said the figures support the view of the UK's house prices reaching their maximum growth.

"Prices in London and the south of England continue to have a large impact on overall performance of the market but price increases in some regions are now quite muted," Mr Williams said.

"There is some evidence to suggest that the three rates rises since August 2006 are impacting upon the market and there is an expectation that price rises will moderate during the year.

"The market in London will probably be slower to react as demand continues to outstrip supply."

Looking at the regional picture, Mr Williams said the three month average growth rate for house prices was level with or below the national average compared with the same period in 2005 and 2006, whereas London house prices were up ten per cent.

The smallest levels of growth experienced over the same period were in the north (4.8 per cent), West Midlands (4.1 per cent) and East Midlands (4.3 per cent).

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