UK house prices were unchanged in August from July after the lowest rate of growth since November 2005 and marking five consecutive months of slowdown, a property website reported.
In its latest monthly survey, Hometrack said increased pressures on affordability led August prices to remain flat on July, bringing the annual rate of growth down to 5.4 per cent from the previous month's 5.9 per cent.
The number of postcode areas registering increased prices fell to 9.3 per cent from July's 14.6 per cent. Increased pressures on prices of late have exacerbated the traditional summer slowdown on the housing market, the website said.
"The increases in interest rates over the last 12 months have pushed average debt servicing costs to a 15-year high, and this will continue to take its toll on levels of market activity and house price inflation over the next 12-18 months," said Richard Donnell, Hometrack's director of research.