NEARLY 60 per cent of house-hunters believe concerns about war and terrorism are having an effect on the housing market.

A survey by property website, Rightmove, found that outside of London, 58.6 per cent of those looking to move house ' 70 per cent in London ' expressed concerns over war, and many said it had had an impact on their decision to move house.

'It is clear the international situation is depressing activity in the housing market,' Rightmove said in its report.

While overall house price inflation rose by 1.2 per cent in March, Rightmove said this was due to seasonal variations and said annual inflation had fallen from 23.5 per cent in February to 22.5 per cent in March. The average property price in the UK now stands at '160,536.

The survey revealed year-on-year house price inflation in London had slumped from 18.3 per cent to just 10.9 per cent. London was the only area to see a fall in prices.

Meanwhile, in the north west house prices rose by 2.1 per cent in March bringing the rolling annual total to 28.2 per cent for the year March 2002 to March 2003, almost six per cent higher than the national figure.

However, the East Midlands saw the greatest rise, prices were up 7.2 per cent, closely followed by the North (6.8 per cent) and Yorkshire & Humberside (5.1 per cent).

The number of properties coming onto the market rose by 22 per cent, the highest level for two years, prompting fears of a further slowdown in the housing market in the coming months.

'Last year's imbalance in the market between sellers and buyers is swinging rapidly in the other direction,' said RightMove. Tweet