By Jonathan Davies

The growth of house prices is slowing as a result of concerns of interest rates, according to Halifax.

Annual house prices were up 8.8% in October, 0.4% lower than the increase seen in September. In the three months to the end of October, prices were up 0.8% on the previous quarter. But Halifax said it was the slowest quarterly rise since December 2012.

The average house price is now £186,135, based on Halifax's data.

The lender said house buying intentions may be 'curbed' as potential buyers grow more concerned about the impact of higher interest rates on monthly repayments.

"While the chances of an imminent interest rate hike may have receded, a recent Halifax survey found that many borrowers are concerned about the impact a rise could have on their monthly mortgage repayments over the next 12 months," said Martin Ellis, housing economist at the Halifax.

"This concern is likely to curb buying intentions."

Halifax adds to a range of data from various organisations which suggest that house prices are starting to slow down after a year of strong growth.

Interest rates have been at the record low of 0.5% for more than five years. But speculation has intensified over recent months as a result of the improving economic climate.

As a few worries over the economy started to creep back in, largely due to the ongoing troubles in the eurozone, the Bank of England has said that interest rates are likely to go up later rather than sooner.

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