(1888PressRelease)
July 31, 2007 - Figures published in the Nationwide House Price Report show that growth slumped to just 0.1 per cent, down from the 1.1 per cent inflation seen in June.
The average house price increased from £184,070 to £184,270, signalling an increase of just £200.
The figures are bad news for sellers as they are the first signs that rising interest rates are having an effect on the housing market and may lead to a price crash.
"House prices managed a seasonally adjusted gain of only 0.1 per cent in July, the slowest pace of growth since April 2006," commented Fionnuala Earley, chief economist at Nationwide.
"The marked slowdown brought the annual rate of house price inflation down to 9.9 per cent, following three consecutive months of double-digit growth.
"The three-month on three-month rate of growth - often a better indicator of the underlying trend of house price inflation - slowed to two per cent and resumed the downward path that had been interrupted in June," she added.
Fast property purchase expert Julian King says: "It's now clear that we are just a few months away from a fall in property prices.
"Although this is not spelling a UK-wide crash, it is certainly causing concern for thousands of homeowners across the UK who are looking for an immediate fast property sale solution."
The news comes on the back of figures released by the British Bankers' Association which showed that mortgage approvals plummeted by eight per cent between June 2006 and June 2007.
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