Rightmove reports lowest February increase for at least five years following January increase in interest rates

UK property prices have reportedly slowed after hikes in interest rates, according to a recent Rightmove house price index.

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A survey on the property web site showed a drop in the average growth of asking prices from 13.5% to 11.5% in the past month, which meant annual asking price inflation dropped by 2%, the sharpest fall for 18 months

The average price in February, based on the survey of 143,000 newly-marketed properties, has increased by just 0.9% to just under £225,000 – the lowest February increase reported since the survey was introduced five years ago.

The average February asking price has always increased by over 2% in the past according to Rightmove.

Rightmove’s commercial director, Miles Shipside, said the rise in rates in January had affected the figures. “With the interest rates rise in the last six months and the looming threat of another, it looks like we have finally reached the point where the market is highly rate-sensitive.”