Looking at the period between April and June 2005, the report showed prices rose 5.4 per cent compared to the same period in 2004 but it was the lowest reported price increase since 1996.
The average house price in England and Wales for the quarter was £184,924, an annual increase of 5.43 per cent compared to an average of 16.98 per cent for the same period last year.
The Registry also revealed the volume of sales continued to fall, slipping 27.7 per cent, but this was smaller than the 34.8 per cent drop seen in the first quarter of 2005.
The Royal Institute of Chartered Surveyors (RICS) said the fall in house price inflation was ‘not surprising’ and was in line with many other reports pointing to a slowdown in the market.
Statistics released by RICS found that June’s new purchase enquiries from would-be buyers had the strongest increase in 18 months as fears over further interest rate rises have faded.
RICS expects a modest upturn in housing activity to continue but a cooling economic climate means it believes interest rate cuts will not spark a renewed housing market boom.
Figures released by the Office of the Deputy Prime Minister (ODPM) showed the UK house price inflation rate fell from 6 per cent in May to 5 per cent in June.
Prices rose by 0.8 per cent over this time but this was smaller than the 1.8 per cent rise seen over the same period last year. Halifax has revealed a house price increase of 0.2 per cent in July following a similar rise in June.
Martin Ellis, chief economist at the Halifax, said: “The annual rate of house price inflation continues to slow, falling to 2.3 per cent in July – the lowest rate of growth since April 1996.”
