House price growth eases in July

LONDON (Reuters) - House price inflation in England and Wales cooled in July, a survey showed on Monday, in a fresh sign the housing market is coming off the boil as interest rates rise.

Property consultant Hometrack said house prices rose an annual 5.9 percent this month, down from 6.4 percent in June.

Prices rose 0.1 percent on the month, the lowest monthly rise since the start of last year. The monthly figures are not adjusted to take seasonal factors into account.

"It was inevitable that the steady increase in interest rates which began last year would ultimately impact on levels of housing demand right across the market -- a trend that has been exacerbated by the seasonal slowdown in activity over the summer," said Richard Donnell, Hometrack's Director of Research.

The Bank of England has hiked borrowing costs five times to 5.75 percent since last August and is widely expected to tighten again before the end of the year as policymakers seek to curb above-target consumer price inflation.