Hometrack: House prices fall in June
According to housing intelligence group, Hometrack, house prices in England and Wales have fallen at their fastest annual pace since October 2009.
According to Hometrack, house prices fell by 0.1% in June and are 3.9% lower on the year.
House prices have now fallen for 11 consecutive months, according to the group.
Hometrack attributes the ongoing trend to weak demand for housing on the uncertainty regarding the economy and the Government’s spending cuts.
Furthermore, the ongoing mortgage rationing by lenders means first-time buyers, in particular, are struggling to get a foot on the property ladder.
On a positive note, however, the number of new buyers registering with estate agents rose in June by 1.9%, after a 0.5% fall in May.
Meanwhile, the volume of sales agreed by agents grew by 10.7% – the largest increase since March, said Hometrack.
The number of homes coming to the market continues to increase with the number of properties for sale rising by 3.5% in June following a 3% increase the previous month.
Richard Donnell, director of research at Hometrack, comments: “While the balance between supply and demand is not significantly out of kilter, subdued demand and weak consumer confidence are set to keep headline prices under modest downward pressure over the months ahead.”