Annual house price growth eased in August

Despite house price inflation in August exceeding expectations, annual growth is at a five-month low, according to the Nationwide building society.

House prices rose by 0.6% in August, which is just above the 0.5% that was expected by industry experts. However, annual house price growth now stands at 9.6%, compared to 9.9% in July.

This is the slowest rate of house price growth since March.

It is thought that the recent rises in interest rates are beginning to affect house prices. Fionnuala Earley, chief economist at the Nationwide, said: "There are now clearer signs of slower demand in the market."

The Bank of England has raised interest rates five times in the last twelve months, in an effort to bring inflation under control.

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