The latest figures have revealed that house prices in quarter 2 of this year were 1.8% higher than those recorded for the same period last year.
This is according to the most recent house price index from the Halifax, with the uplift in June slightly lower than May’s growth of 1.8%. UK house prices have risen at the slowest pace since March 2013 in the year to June,
In the last three months, the cost of an average house or flat actually fell by 0.7%, the largest quarterly decline since February 2012.
At present, the average house price is £225,654.
However, the Halifax said there was little change in the annual growth figure from last month.
“House prices continue to remain broadly flat, with the annual rate of growth marginally slowing from 1.9% in May to 1.8% in June,” said Russell Galley, managing director of the Halifax.
“Activity levels, like house price growth, have softened compared with the final months of last year. Mortgage approvals have been in the low range of 63,000 to 67,000 since the start of the year, whilst home sales have remained flat so far this year.”
Commenting on the figures was Alan Collett, Fund Manager at Hearthstone Investments. He said:
“In line with Halifax’s figures, independent valuations of our own properties are showing little change month on month. Regionally, we are seeing more buying opportunities in the Midlands and Yorkshire, where house prices are showing continued growth, than in the more expensive markets in parts of London where prices remain subdued as buyers adopt a “wait and see” approach in the face of the current economic and political uncertainties.
“We also continue to see strong demand for well-managed rental homes nationwide and currently have a record 96.5% occupancy rate of our properties. We recently let a new house within 48 hours of marketing beginning, illustrating the strength of the market for long-term investors. With some economic indicators looking more favourable and Mark Carney’s recent comments on the strength of the UK economy, we are confident the outlook for residential property will remain positive.”
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