Halifax reports 1.2% rise in June house prices

| July 6, 2011 | 0 Comments

The Halifax has today revealed UK house prices rose by 1.2% in June on a monthly basis.

The rise represented the biggest month-on-month gain since October and takes the average cost of a UK home to £163,049, the Halifax said.

However, on an annual basis, prices are 3.5% lower.

When comparing prices in the three months to the end of June with the previous quarter (which is a more reliable indicator), there was a decline of 0.5% - the smallest quarterly drop since the second quarter of 2010.

Uncertainty surrounding the economy has driven prices lower in the first part of the year and the housing market will remain subdued in the short-term but many reports suggest prices will stabilise in the latter half of the year.

Commenting on today‘s report, Halifax housing economist Martin Ellis said: “A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months.”

However, Mr Ellis cautioned: “The market is likely to continue to face significant headwinds which are expected to constrain housing demand.”

In comparison, last week the Nationwide said house prices remained unchanged in June after a 0.3% rise in May – in line with expectations.

On an annual basis, house prices are now 1.1% lower than this time last year with the average UK home costing £167,208, according to the Nationwide.

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