House price inflation slows

HOUSE PRICE inflation slowed slightly in the third-quarter of this year to an annual rate of 9.2 per cent, according to a quarterly survey by Nationwide building society.

Prices in 1999 are forecast to rise by just 2.5 per cent. A separate survey by the Halifax predicted a more modest slow-down next year, with prices rising by 4 per cent.

House price inflation has slowed most markedly in London, from 20 per cent a year ago to just 11 per cent between 1 July and 30 September. Both lenders said there was no reason to fear a slump on the scale of 1989 to 1992.