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House prices expected to rise at slower pace this year

Property

Homeowners are slowly coming to terms with lower valuations for their property after price growth expectations fell to an 18-month low, ahead of the general election. Over the three months to February householders became steadily more pessimistic, predicting slower price appreciation in 2015, according to Knight Frank. Despite the low interest rate environment and wide range of cheap mortgage deals on offer, its sentiment index fell from 74.9 a year ago to 68.2 this February, having peaked at 75.1 in May. Analysts at Knight Frank blamed the cooling sentiment on affordability constraints following rapid house price growth in the first half of 2014, while many householders were also distracted by the general election.

 

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