House price growth remained steady at around 11% per year in August, according to Assetz composite house price index.
Assetz House Price Watch, created using data from five major UK house price surveys, show an annualised growth rate of 11.1% in August and a 0.5% increase in growth since July.
However, Assetz says house price growth is slowing, with average values increasing by less than £1000 a month for the past two months, compared with a £20,000 total increase since August last year.
Assets says the stabilisation of prices is largely attributed to dented consumer confidence, the launch of HIPs and the fact the summer is a traditionally slow period for house sales.
However, the report says there is little risk of a significant downturn in house prices and buy-to-let investors with a medium or long-term view should remain confident.
Stuart Law, chief executive of Assetz, comments: “There remains little evidence that we are any closer to a solution to the housing shortage in this country. This will ensure a continued strong demand, keeping house prices at their current high levels.”
Law predicts a 0.5% drop in interest rates in the new year and says growth will stabilise for the rest of the year and stick at around 5-7% in 2008.
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