House prices rise across Europe
The price of property in many European countries is continuing to rise, new research has revealed.
According to the Royal Institute of Chartered Surveyors (Rics), house prices in both Spain and France went up by 3% last year.
Although this represents further growth in the market, the figure is down on the amount recorded 12 months earlier.
This suggests that the property boom in Europe is ending and that the market is starting to slow down.
Rics attributed this to recent increases in interest rates by the European Central Bank, which came in the wake of the global credit crunch.
The organisation said that the future performance of the housing market across the continent was dependent on what happens to interest rates in the next few months.
Professor Michael Ball, author of the report, commented: "The often repeated dilemma currently facing monetary authorities is that slowing economies - and housing markets - need lower interest rates, but higher inflation is against them."
This comes after the National Association of Estate Agents stated that global economic problems were not putting people off buying property overseas.
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