House prices grow at slowest rate since July '06

The survey shows average year-on-year values grew by 3.6% this month, while average prices fell 0.2% since October when the market fell 0.1%. However, a continued tightening in housing supply has supported values, with available properties falling 2.9% over November. Richard Donnell, director of research at Hometrack, says: "Continuing media focus on the fall out from the credit squeeze, along with relatively high interest rates is resulting in widespread caution among homeowners, the majority of whom do not need to move and who are sitting back until the outlook becomes clearer. "A...