Britain's bursting property market finally seems to have cooled down after latest findings by Halifax suggest house prices in June rose by the slowest pace in seven months.
According to the lender's monthly housing survey, property prices in the UK increased by just 1.2% in June.
This is the smallest gain since November last year, and is below the average monthly rise of 2.1% seen in the previous six months, Halifax says.
Martin Ellis, Halifax chief economist, believes the latest figures indicate recent increases in the cost of borrowing - brought on by rises in interest rates - are finally beginning to curb housing demand.
That said, potential buyers still had to fork out an average of £159,735 if they wanted to buy a house in June.
Overall, house prices rose throughout the country in the second quarter this year.
Scotland, which saw prices increase by 11.9%, experienced the biggest rise, whilst prices rose by just 1.8% in greater London.
This trend further narrowed the north/south divide in the second quarter, with the average price in the south now being 1.74 times higher than in the north. This is the smallest gap in five years, Halifax says.
Ellis says: "The biggest price rises in the last year have been in northern England and Wales. There were, however, signs of a slowdown in these parts of the country with prices rising by less in the second quarter than in the preceding quarter.
"We expect this trend to continue during the second half of the year, contributing to slower UK house price inflation," he concludes.IFAonline
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