House Price growth slows

Recent interest rate rises may finally be making an impact on house price rises as figures from Halifax and Nationwide show almost zero growth last month

The Bank of England has increased interest rates five times in the past year in an attempt to cool inflation.

The Bank's key rate now stands at 5.75%, and some analysts expect rates to hit 6.25% before the end of the year.

"The Bank of England now faces a tough balancing act in the months ahead, with tightening consumer finances on the one hand and resilient economic growth on the other," said Nationwide chief economist Fionnuala Earley.

"Fundamentals do suggest that household finances are coming under considerable pressure, and that house prices and consumer spending will both see a slowdown in the second half of the year.

"The sharp slowdown in July's house price numbers could show that potential homebuyers are thinking twice about overstretching themselves in a higher interest rate environment."

Fixed Rate coming to an end?
For a £100,000 mortgage the jump from a 6% to 7% rate means an extra £83 per month