Halifax’s house price index recorded a one per cent rise in August although it pointed to a slowing price growth rate in the market.
The index also revealed that in August house price inflation fell from 9.2 per in June to 8.2 per cent and the group expects the trend to continue over the next few months.
The number of loans approved for house purchase in the three months to July 2006 is up 24 per cent compared with the same period last year according to the latest Bank of England figures.
However Halifax says there is little evidence to suggest that activity has reached a plateau with the latest RICS survey indicating little change in completed property sales in July for the third consecutuve month.
Halifax chief economist Martin Ellis says: “There are signs, however, that the market is slowing with an overall increase in house prices over the three months from May to August of only 0.2 per cent compared with a 2.9 per cent rise in the preceding three months.”