House prices in Britain rose at their slowest pace for eight months in January, a survey showed today.
The Nationwide building society said prices rose 0.3 per cent this month, slipping from December's 1.2 per cent increase and registering the smallest gain since May last year. Prices rose 9.3 per cent on a year ago, down from a 10.5 per cent increase in December.
Housing surveys had depicted a broadly strong market towards the end of last year, despite two quarter-percentage point interest rate rises in August and November.
But a Halifax survey for December showed prices falling and forward-looking mortgage approvals data from the British Bankers' Association showed loans approved for home purchases fell an annual 11.1 per cent last month.
The Bank of England raised rates again this month to 5.25 per cent, and economists expect higher borrowing costs to eventually weigh on housing market sentiment, especially given rising living costs and moderate wage rises.