This is around half the rate of house price inflation over the last 12 months, according to propertyfinder.coms August index.
Despite expectations of a slowdown, the research indicates a positive long-term outlook for the housing market as a lack of supply continues to buoy prices. More than 40 per cnet of people attribute house price rises to a lack of homes coming onto the market, and a further 39 per cnet say that a lack of new homes being built is pushing up prices.
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Warren Bright, chief executive of propertyfirnder.com, said: The housing market remains resilient although interest rates have had a cooling effect on price growth and the full impact is yet to feed through into data.
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Changes in consumer attitudes are the first indicator of market conditions to come so we should expect house price inflation to slow. Nevertheless, supply is chronically constrained with too few properties coming onto the market and far too few being built. Inevitably that will support prices over the longer term.
The MPC minutes published this week agree that the housing market is experiencing a gentle slowing and is reacting to their medicine.
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Bright said: The housing market is still in very good health so far. It has moderated in a controlled way and is reacting just as the MPC would have hoped. However, the rises so far will continue to affect the market for several months and any further hikes could be overkill.
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