House prices stall and could fall

| July 2, 2012
House prices stall and could fall

House price growth stalled in June according to new figures from property analyst Hometrack.

New buyer registrations were 0.5 per cent lower in June, the first time they have fallen on a month-on-month basis, for the past five months.

Supply continued to increase, causing prices to fall even further.

The only place which saw an increase in house prices last month was London, where they rose by 0.3 per cent.

Prices fell in seven regions in June compared with three in March, according to Hometrack’s figures.

There was a fall of between 0.1 per cent and 0.2 per cent in the East Midlands, the South West, East Anglia, the North East, the North West, the West Midlands and Yorkshire and Humberside.

Prices remained stable in the South East and Wales.

Richard Donnell, director of research at Hometrack, said: “As we move into the summer months the traditional seasonal slowdown will ensure that demand remains subdued – the Olympics are only likely to contribute further to this.

“As a consequence we expect the balance between supply and demand to widen with house prices set to come under renewed downward pressure over the second half of the year.”

Hometrack expects prices to fall by to 2 per cent in the next six months due to the weak UK economy and the ongoing eurozone crisis.

The latest Land Registry figures have also been released.

While these are considered the most comprehensive figures available for England and Wales, they are published later than many other surveys, and the latest figures relate to May.

According to the Land Registry, house prices in England and Wales rose by 0.5 per cent in May compared with April, and by 0.4 per cent compared with May 2011.

The average home was valued at £161,677 in May, the Land Registry said.

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