House price growth in England and Wales has halved in the past six months according to figures from the Financial Times.

Average house prices have risen by around 2.5 per cent in the last six months compared to a by five per cent growth in the previous six months. The annual rate of property inflation also decreased, dropping back to 8.8 per cent last month, down from the 9.4 per cent in August.

Acadametrics, which compiled the statistics for the newspaper, said the fall was expected.

Dr Peter Williams, chairman of the organisation, said the situation seems “to suggest we will now see a period of further reductions in the rate of price increases”. “The expectation of a slowing market through the remainder of 2007 remains regardless of any decisions by the Bank of England,” he said.

Tightening lending criteria as a result of the US credit crisis has led organisations to warn that conservative lending will result in a market slowdown.

Halifax has previously stated that its own data has shown a decrease in house prices over the last month.

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