The index, which was provided to the FT by financial services research company, Acadametrics, revealed house prices in England and Wales rose by 0.1% in December on a monthly basis which is the lowest monthly rate since July 2005.
Although prices increased by 7.9% on an annual basis down from 8.9% in November, this was the lowest annual growth rate since October 2006.
London continues to be out of step with the rest of England and Wales, with an annual growth rate of 17.4% which is nearly double the next highest region.
Dr Peter Williams, chairman of Acadametrics, commented: “With continued weakening in consumer confidence and the extensive negative commentary on market prospects in 2008, we would expect this downward trend to continue even though the fundamentals of demand and supply, employment and interest rates remain favourable.”
