Row of housesThe five major house price indexes are showing signs of stabilising prices in the UK, according to research from Assetz.

The Assetz House Price Watch released on Friday showed that price growth had dropped slightly and almost under double figures to 10.1 per cent, a dip of 1.1 per cent in the year to July 2007.

It had now fallen to its lowest level this year.

The drop had been expected, as increasing interest rates, up to 5.75 per cent in July, continued to affect buyers' loans.

But Assetz argued the drop had no larger significance and was rather a sign of greater stabilization in the market, as house price growth continued at a relatively strong levels.

And the recent drop in inflation to below two per cent will likely lead to a freeze of interest rates when many had predicted further rises, which will be good news for property buyers.

"As anticipated, the average rate of property price growth began to show signs of falling back this month slightly, although annual price growth is still exceeding ten per cent," Stuart Law, chief executive of Assetz.



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