Halifax reports fall in house prices in June

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by Kay Murchie

Hopes of a recovery in the housing market were hit today after the latest house price index from the Halifax reported that house prices fell by 0.5% in June from the previous month.

The fall takes the annual rate of decline to 15% - down from 16.3% the previous month and means the average UK property now costs £157,715.

The lender reported a rise in house prices in May of 2.6%, fuelling hopes of a recovery but the Halifax did highlight that there was evidence the property market was stabilising.

According to Halifax’s chief economist, Martin Ellis, prices had fallen by only 1.9% in the past three months - the smallest three-month decline since the first quarter of last year.

Mr Ellis comments: “These figures provide evidence that the underlying pace of house price decline is easing. There are further indications of a modest improvement in sales activity, albeit at a very low level.”

However, the figures differ to those reported by Nationwide last week who said UK house prices rose in June by 0.9%. The rise, according to the Nationwide, puts the average cost of a home at £156,442.

David Smith, of property consultancy Carter Jonas, said: “The housing market has started on the road to recovery, but it’s going to be a long one….. we are likely to bump around the bottom for some time yet.”