Halifax: house prices up 0.6% in July

| August 4, 2010

Halifax has reported that UK house prices increased by 0.6% in July, reversing a fall of 0.6% in June.

Prices were 4.9% higher year-on-year, having lost ground on a month earlier when the annual rate of growth registered at 6.3%.

At A?167,425, the value of the average home stood 8.3% above its April 2009 trough but 16% below its August 2007 peak.

According to the lender’s housing economist, Martin Ellis, there has been little change in prices so far this year.

He suggests that an increase in the number of properties for sale, boosted by the recent abolition of Home Information Packs, has relieved upward pressures on prices, while low interest rates and a recovering economy continue to underpin demand.

However, the economist adds: “The mixed pattern of monthly rises and falls over the first seven months of the year is consistent with a slowing market.”

By way of comparison, Nationwide recently reported that the value of a typical UK home declined by 0.5% in July, to A?169,347.

The building society’s chief economist, Martin Gahbauer, suggest that it is too early to tell whether house prices will remain flat in 2010, or whether further price falls are in store.

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