The Halifax House Price Index reports that house price growth rose by just 1.0% in August. Key Points from the August National Index:
* House prices rose by 1.0% in August.
* The overall increase in house prices over the three months from May to August is only 0.2% compared with a 2.9% rise in the preceding three months.
* The annual rate of house price inflation eased to 8.2% from 9.4% in June.
* The number of loans approved for house purchase in the three months to July 2006 is up 24% compared with the same period a year earlier, according to the latest Bank of England figures.
Commenting, Martin Ellis, Halifax Chief Economist, said: "House prices rose by 1.0% in August. There are signs, however, that the market is slowing with an overall increase in house prices over the three months from May to August of only 0.2% compared with a 2.9% rise in the preceding three months. August's increase was smaller than the 1.4% rise in August 2005, contributing to a slowdown in the annual rate of house price inflation to 8.2% from 9.4% in June. We expect this trend to continue over the coming months with the annual rate easing to 5% by the end of the year."
