The UK's property market cooled slightly in August, according to a report from the British Government's new monthly property index. The latest figures from the Office of the Deputy Prime Minister showed that the annual rate of house price growth stood at 14pc in August, down from 14.6pc in July. That compares with recent growth estimates of up to 19pc a year from leading mortgage lenders. The Government survey estimated the average cost of a house at STG159,010, up from STG156,273 in July.
The Deputy Prime Minister's property survey, published for the first time today, followed calls from the Bank of England for an official monthly index to help their forecasting. While other market surveys are based on prices agreed when mortgages are approved, the Government's version is based on prices achieved when the transactions are completed. The survey highlighted big regional differences across the UK, with annual house price inflation highest in north-east England at 26.3pc and lowest in London at 8.9pc. Northern Ireland, the area with the lowest level of house price inflation in July, showed the largest increase this time from 4.6pc to 8.5pc in August.//www.fxcentre.com