Estate agents see UK house prices go into reverse
Estate Agents - 06/07/2006 14:05:35
Estate agents saw the UK housing market go into reverse gear last month, with prices falling by 1.2 per cent, according to new figures from Halifax.
House price inflation had been growing steadily over the first half of the year, but May saw a rise of just 0.1 per cent, suggesting that the market may finally be cooling off. Halifax's June figures should go some way to support this.
Indeed Howard Archer, chief UK and European economist at Global Insight, said: "The surprisingly sharp 1.2 per cent fall in house prices in June reported by the Halifax, following an increase of just 0.1 per cent in May, adds to the mounting evidence that house prices have recently lost momentum."
Also giving support to this conclusion, Halifax said that the number of mortgages being approved between March and May this year was down 4 per cent compared with the preceding three months.
Halifax said that higher utility bills and rise in council tax will put a squeeze on consumers in the coming months, easing house price inflation over the remainder of the year.
But despite the slowdown, the mortgage lender was keen to stress that June's figures did not necessarily signal a housing market crash.
"Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006," said Martin Ellis, Halifax's chief economist.
If you want to take advantage of this slump in house prices by purchasing a property, you can contact a local estate agent to show you what is available in the housing market.