House prices slow slightly in Jan

According to Nationwide building society, house prices rose at their slowest pace for eight months in January, indicating higher borrowing costs may be starting to dampen the housing market.

Prices rose 0.3% this month, slipping from December's 1.2% increase and registering the smallest gain since May last year. Prices rose 9.3% on a year ago, down from a 10.5% increase in December.

Natiowide's chief economist Fionnuala Earley said today, "It is likely that we will now begin to see a weakening in demand as a result of stretched affordability and rising interest rates."