New figures suggest that the growth of housing market is finally beginning to slow down, with the recent raising of interest rates finally taking their toll.

The latest house price index published by Rightmove reveals that the average cost of a home in the UK grew by 10.3 per cent over the past 12 months, down from the rate of 13.2 per cent experienced over the previous year.

In addition, the average monthly growth in the market has also declined, with prices increasing by just 0.3 per cent between June and July, the slowest rate so far this year.

However, while the market in London has also slowed slightly, property prices in the capital remain strong, with the annual rate of increase around double that of all the other regions across the UK.

"This is further evidence that the 'mini boom' is coming to an end," said Mike Shipside, commercial director of Rightmove.

"As long as employment remains buoyant, prices are likely to remain broadly at these levels.

"However, depending on local supply and demand, sellers are going to have to duck and weave with their asking prices, especially if there is another rise in interest rates."