[LONDON] London house-price growth will slow to about 3 per cent next year as the prospect of higher borrowing costs forces sellers to lower their expectations, Hamptons International said in a report yesterday.

The 2015 forecast by the London-based broker is half the pace it predicted in September. Values in the city will probably climb 15.5 per cent this year, it said, more than double its previous prediction.

London's residential property values rose at their slowest pace in 15 months in June, after leading the surge in British house prices in the past year, the Royal Institution of Chartered Surveyors said last month.