House prices slide 2% in June

| July 10, 2008
House prices slide 2% in June

Halifax has published its latest house price index showing a 2% slide in the average price of a UK home, in June.

The fall puts the cost of the average UK residential property at £180,344, down £3,640 on May and almost £20,000 below the average at the peak of the market, last August.

By comparison, Nationwide recently reported that house prices fell by 0.9% in June, with the average home costing 6.3% less than a year ago.

While there is disparity in the monthly figures, Nationwide’s estimate of the annual decline is close to that of Halifax, which puts the annual rate of decline at 6.1% in June, its highest level since March 1993.

June’s 2% fall was slightly behind the 2.5% decline seen in May and prices remain 10% higher than in June 2005.

Halifax chief economist, Martin Ellis, points out that the average UK house price has risen by 150% during the past decade and he believes that the UK’s strong labour market will continue to be a key element in underpinning housing valuations.

However, the current buyers’ market will continue as long as mortgages are in short supply and with vendors outnumbering potential purchasers by an estimated 15 to one, the pressure on house prices remains downward.

Halifax says it expects house prices to fall by 9% this year.

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