UK house price inflation is down to 4 per cent, its lowest since 1996, according to the OPDM.
The Royal Institute of Chartered Surveyors notes that the Q2 inflation rate has dropped from 14.3 per cent last year, saying the market has been slowing for almost 12 months.
House prices have risen 170 per cent since Q2 1996, having risen at an annual rate of 25 per cent, RICS reported at the end of 2002.
Despite speculation that house prices might fall after many years of rapid growth, a tighter monetary policy has prcipitated this cooling off, with the Bank of England raising interest rates 1.25 per cent between November 2003 and August 2004.
This tightening had a direct and immediate effect on mortgage interest rates, now rising for the first time in five quarters, says RICS.