House price rises are set to slow

The recent upward trend, which has seen property prices rise in the UK, is set to slow, it has been claimed.

Paul Holmes, chief executive of property specialist Firstrung, has estimated that prices are set to decline by up to 15 per cent over the next 14 to 18 months.

"We've had a pause for breath and house prices will now continue on a slow, downward spiral until we reach a peak to trough fall of about 30 per cent," he said.

The comment comes despite a recent report from Nationwide, which although revealing a month-on-month fall in house prices, said it is still "too early" to tell if this is the start of a new downward trend.

According to the Nationwide report, the decline could be attributed to a reduction in activity as a result of the adverse weather conditions experienced in the UK over the last few months.

However, recently-published official figures from the Land Registry revealed that property prices increased by 5.2 per cent in January, the second consecutive month of positive growth.

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