British house prices grew at their slowest rate in over a year in July in the latest sign that Britain’s housing market may be starting to cool, a survey showed on Friday. House prices rose by 0.1 percent this month – the slowest growth rate since February 2013 – easing from a 0.3 percent increase in June, according to property analysts Hometrack.
Britain’s housing market has had a rapid recovery this year, with prices rising more than 11 percent and more than double that in London by one measure. But Hometrack said the prospect of higher interest rates and the introduction of tougher mortgage rules could be denting appetite.
“The lead indicators in the survey have pointed to a slowdown in the rate of growth for the last two months, in part due to warnings from the Bank of England and others of a possible house price bubble,” said Richard Donnell, director of research at Hometrack.