House prices lose 0.6% in June

| July 8, 2010 | 0 Comments

UK house prices fell by 0.6% in June, following a similar decline in May, Halifax has reported.

The average value of a home stood at £166,203, with the annual rate of gain easing back to 6.3%, compared with 6.9% in May.

That being said, prices in the April to June quarter were largely unchanged compared with the first three months of the year, and remain 7.5% above their April 2009 trough.

The lender’s housing economist, Martin Ellis, comments: “This pattern is in line with our view that house prices will be broadly unchanged over 2010 as a whole.”

He adds: “A shortage of properties for sale in 2009 contributed to an imbalance between supply and demand and was a key factor driving up house prices last year.”

However, upward pressure on prices has been relieved by a surge in new instructions for sale, particularly since Home Information Packs were suspended, in May.

Mr Ellis also points out that low interest rates continue to support housing demand.

By way of comparison, Nationwide has reported a 0.1% rise in house price in June, compared with a month earlier, with the annual rate of inflation dropping back from 9.8% in May, to 8.7%, and expected to drift lower.

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