House prices cooled this month after the rise in interest rates helped rein in rampant autumn buying, research showed today.

Property web site Rightmove.co.uk said asking prices fell 0.1 per cent as housebuyers reflected on the impact of a quarter-point hike in base rates on their mortgages.

This return to calm in the property market was reflected in a slight rise in the annual rate of price inflation to 9.9 per cent from 9.8 per cent, well down on the 26.5 per cent growth seen at the beginning of the year.

But Miles Shipside, commercial director of Rightmove, said many of the engines that drove house prices to an 18-month high last month remain.

A shortage of properties worsened during this month, with more than 47,000 homes coming off the market than coming on, a 25 per cent rise in just two months.

"At the same time there will be fewer people actively looking over the next month as buying Christmas presents will take precedence over buying houses," Mr Shipside said.

"Prices are stable, economic confidence is sound and mortgage rates are still very low by historic standards so conditions will remain good for people looking to sell or buy a house through into the new year."

The market in London remained buoyant, with house prices rising 1.1 per cent.

Monday November 17, 2003