The housing prices have risen by 1.6 per cent in the year to May. This growth is mainly driven by gains in London. There was no monthly growth in housing prices in major part of the UK, a survey revealed yesterday. According to property consultant Hometrack housing prices have risen by 0.6 per cent on the month. This growth is driven by around 1.2 per cent rise in London.

That left housing prices up by 1.6 per cent on the year to an average £164,500. This was followed by a 0.9 per cent annual increase in April. The consultancy has warned that talk of higher rate of interests and affordability limitations could restrict future growth. Experts believe that this slow growth can have a negative impact on homeowner loans.