Wimpey: Interest rates slowing UK house price inflation

Wimpey has stated that higher interest rates are slowing down the rate of house price inflation.

In a trading statement for the six months to the end of June, Wimpey has stated that market conditions in the UK have remained healthy and the recent interest rate increases are having their desired effect of slowing down housing inflation.

The company notes that the market for properties above Stg£300,000 in the South-east and above Stg£250,000 in the midlands have been stable with limited price movements over the last few months.

McInerney's UK operations are concentrated in the North of England with an average house price of Stg£110,000, while Abbey is in the south-east with an average price of Stg£170,000.

With over 75% of the full year's expected sales reserved in the UK, Wimpey expects both sales and margins to be ahead of last year.