Housing bubble deflating

Land Registry figures have shown that house price rises in seven out of 10 regions in England and Wales slowed in June. The most dramatic change was in London, where prices rose just 0.1% in June to an average of £437,608, up £536. Experts believe tougher mortgage rules, concerns over an interest rate rise and the strength of the pound have combined to bring growth almost to a complete halt. In the South East, prices rose 0.6%, down from the 1.9% increase registered in April. "I think we have been in a bubble in London and some pockets of the South East. That bubble may now be deflating. There's been a lot of evidence that prices in London and the South East have been losing momentum but nothing with hard data. The Land Registry figures are reliable - although a little dated - but they are gospel,” said Howard Archer, chief UK and European economist at IHS Global Insight.