House prices dip slightly in 3 months to July: Halifax

Marco Green
August 7, 2017

In fact, the annual rate of growth is at its lowest since April 2013, when it stood at 2%. Prices in the three months to July were marginally lower than in the preceding three months, while the annual rate of growth has edged down from 5.7 per cent in January to 2.1 per cent in July; the lowest rate since April 2013.

The average United Kingdom house now costs £219,266, Halifax's study shows, 10 per cent above their August 2007 peak.

The average price of a home rose to £219,266 in July, up 0.4% from June. "It was down from 2.6% in the three months to June, 3.3% in the three months to May and a peak of 10% in the three months to March 2016".

The latest data from the Bank of England (BoE) shows that mortgage approvals for house purchases slowed to a nine-month low in June.

He noted that rising employment levels had pushed the unemployment rate down to 4.5%, the lowest since 1975.

A 0.2 per cent drop in the three months to July marked the fourth successive quarter in which prices have fallen - the first time such a trend has been witnessed since 2012.

"The speed of price growth has slowed substantially, and at a national level average prices are still flatlining rather than falling". This squeeze on spending power, together with the impact on property transactions of the stamp duty changes in 2016 now being realised, along with affordability concerns, appear to have contributed to weaker housing demand.

He estimated that prices would rise by around 2 per cent of 2017 as a whole and would be "essentially flat" in 2018.

In London, while there has been a softening of the prime central market, strong demand from overseas investors has continued as they look to take advantage of the weak pound, particularly those from the US, Middle and Far East, said Thomas van Straubenzee at property agency VanHan.

Both Halifax and Nationwide say that a lack of homes on the market will continue to support prices in coming months.

Meanwhile, house prices increased by more-than-expected 0.4 percent in July from June, when they declined 0.9 percent. This is the lowest level since 96,740 in October 2016.

According to the Royal Institute of Chartered Surveyors, the average stock on surveyors' books has hit a new low, highlighting the ongoing supply shortage.

Jonathan Hopper, managing director of Garrington Property Finders, said the housing market was losing steam.

Unsurprisingly this has seen the number of United Kingdom home sales declining, with the HMRC recording a 3% fall between May and June, the lowest level last October.

Other reports by Click Lancashire

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