In June 2002, annual house price inflation reached 19.3%. Prices have risen 11% since the beginning of the year.
The Halifax said that the market was unlikely to keep growing at its current rate, despite having experienced a steep growth curve in recent months. Gary Styles, head of economics with the Halifax, added that the shortage of properties for sale has been a major factor to house price growth in London and the south.
However, higher interest rates, slower income growth and lower buy-to-let volumes would probably slow down the growth of house prices in the near future.
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