House price rises 'still slowing'

Property is taking longer to sell

House price increases have slowed for the seventh month in a row, according to a survey.

The research, from property website Rightmove, shows that the average cost of a property in the UK rose by a modest 0.4% last month, down from 1.3% in May.

Annual house price inflation fell to 13.2% in June, less than half the 26.5% rate recorded in January.

The figures reinforce the Council of Mortgage Lenders' finding last week that high prices are increasingly preventing first-time buyers from getting a foothold on the property ladder.

But Rightmove concludes that the property market is undergoing a soft landing rather than a crash.

North-South divide

According to the website, the gap between house price rises in the North and South has narrowed.

Fastest risers Yorkshire 2.4% London 2.1% East Anglia 1.4% South East 0.5% Source: Rightmove

In a reversal of recent trends, the London housing market has strengthened while prices in the north have started to fall.

And Rightmove's figures suggest that the areas of the UK which have been shown in recent surveys to be in the grip of declining market enjoyed a bounce in June.

In East Anglia and the South East - two areas previously shown to be in the doldrums - prices have increased by 1.4% and 0.5% respectively, higher than the national average.

London boost

Similarly, house prices in the capital have risen 2.1% in June.

Fastest fallers West Midlands -1.5% North -1.5% East Midlands - 0.5% Wales - 0.4% Source: Rightmove

Conversely, house prices in Wales, the North and West Midlands, considered the engine of house price growth during the last year, all fell this month.

Across the UK, the market remains significantly slower than last year, with properties now taking almost three weeks longer to sell compared with 12 months ago.

"House price inflation continues to trend down towards the 10% level, supporting the view that we are seeing a soft landing," said Miles Shipside, commercial director of Rightmove.