House prices remain flat in June

Lloyd Doyle
July 9, 2018

House prices were broadly flat across the United Kingdom in June, as worries about Brexit and a possible rise in interest rates subdued the market.

HOUSE prices across the United Kingdom remained "broadly flat" in June, edging up by 0.3 per cent month-on-month, Halifax has reported.

Russell Galley, the Halifax's managing director, said property values remained broadly flat, amid relatively low levels of market activity.

Trussle chief executive Ishann Malhi says that sluggish price rises and improving wages means that "first-time buyers will slowly see their prospects improve", although he adds that, "according to our analysis of house prices and wage growth, is three times harder than it was when England lifted the World Cup in 1966".

The results come a week after Nationwide's index figures showed house price growth fell to a five year low in June, although average house prices rose to £215,444.

Prices rose 1.8 percent in the three months to June compared with a year ago, matching the consensus in a Reuters poll of economists and compared with a 1.9 percent rise in May.

He said that, at the halfway stage of 2018, the annual rate of house price growth is within Halifax's forecasts of 0 per cent to 3 per cent.

Mr Galley continued: "We continue to see very positive factors of continuing low mortgage rates, great affordability levels and a robust labour market. The continuing shortage of properties for sale should also continue to support price growth".

"Most of the past year's growth was between June and October, with house prices now the same as they were in October 2017".

However, the flat figures indicate troubles in the property industry that were brought to light earlier this month when some of the major housebuilding companies warned of higher costs and thinning profit margins.

"April's snapback was the sharpest monthly fall since 2010 but given the opportunity there are clearly people waiting on the sidelines ready to pick their moment".

"Transaction levels, new buyer enquiries and supply have been depressed for some time now and shopping baskets continue to go up in price faster than shoppers' homes".

Other reports by Iphone Fresh

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