HOUSE prices are continuing to rise, though the rate of growth has slowed considerably, says estate agent Your Move.

With many lenders reviewing their mortgage rates as higher base rates begin to impact, inflation in the housing market is finally cooling correspondingly. Agreed house prices rose by 0.4 per cent in the last month, according to Your Move data.

August agreed prices averaged at £183,012, up just 0.4 per cent from July’s average of £182,438. Year on year, agreed house prices rose at a rate of 6.3 per cent to August 2007 according to the data. But over the last six months, agreed prices have risen 2.1 per cent from £179,158 in February 2007, an annualised rate of 4.2 per cent.

The August monthly increase is in line with this trend with the annualised rate of growth at 4.3 per cent.

Managing director of Your Move, David Newnes, said: "House price inflation is finally showing real evidence of slowing. Five base rate rises this year are clearly having the desired effect.

"The holiday season over August usually contributes to a seasonal slowdown. The implementation of HIPs has clearly hampered the market a little over the summer months. But the flattening off of house prices shouldn’t be seen as cause for panic.

"Rather, it should be a sign of success in inflationary control for the Bank of England. We would therefore urge the MPC not to put rates up any further."