House prices rose at the slowest rate for nine years last month according to the Nationwide. The building society said the annual increase in the cost of a home was 2.6% in July, down from 4.1% in he previous month and the smallest rise since May 1996. The housing market has slowed since the Bank of England’s monetary policy committee increased the cost of borrowing from 3.5% in November 2003 to 4.75% last August. But Fionnuala Earley, group economist at the Nationwide, says a cut in rates may not boost the market. “A fall in rates is unlikely to cause acceleration in the rate of house price growth at this point in the cycle, particularly if labour market conditions worsen. The actual impact will depend on what happens next in terms of general economic sentiment.” (The Guardian)