House prices fall by 1% in June

In statistics released by the Halifax today (7th July), house prices in the UK fell by 1% in June, the largest monthly fall since January.

The research also showed that prices in the three months to June were 0.1% lower than in the previous quarter.

The average house or flat price has fell to a price of £218,390.

Martin Ellis, Halifax housing economist, said: “House prices have flattened over the past three months. Overall, prices in the three months to June were marginally lower than in the preceding three months. The annual rate of growth has fallen, to 2.6%; the lowest rate since May 2013.

“Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages. This, combined the new stamp duty on buy to let and second homes in 2016, appears to have weakened housing demand in recent months.

“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale should help continue to underpin house prices over the coming months.”

Another notable result from the latest Halifax First Time Buyer Review is the number of first-time buyers (FTBs), which has reached an estimated 162,704 in the first half of 2017, only 15% below the peak in 2006 (190,900). This is up 154,200 from the same period in 2016 and more than double the market low in the first half of 2009 (72,700).