House price growth in the UK has slowed by a further 0.2% in October, according to Assetz latest house price watch.
The Assetz index, an aggregate of five major house price indices, found a small drop in annualised house price growth but says prices are still increasing faster than a year ago.
The index shows annual price growth of 9.7% in October, down from 9.9% in September, and Assetz says it expects growth for 2007 to be between 8% and 9% by the end of the year.
The average price of a home in the UK has risen by £1,807, to £214,795 in October and is £18,657 more than this time in 2006.
Commenting on the research, Stuart Law, chief executive of Assetz, says: “Annual house price growth continued to fall back slightly, but this was widely anticipated and should be little cause for alarm. We initially anticipated that an annual growth of 8% would be seen for 2007 and it now looks likely that our forecast was accurate.
“I would expect average house price growth across the indices to be around 5% in 2008, as the market continues to stabilise.”
Assetz also called on the Bank of England to reduce interest rates to help borrowers. It says inflationary pressures had taken precedent over borrower concerns which pose a major threat to the UK economy.
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