House prices down again
Published: 8 July 2009 By MoneyhighStreet Staff Leave a Comment
House prices fell 0.5% in June according to the latest Halifax House Price Index, disappointing after the Index showed house prices rising 2.6% in May.
House prices, however, only fell by 1.9% over the last 3 months which is the smallest decline seen since the start of 2008.
As Martin Ellis, housing economist at Halifax, commented, ‘There are further indications of a modest improvement in sales activity, albeit at a very low level.
Industry-wide figures show that the number of mortgages approved to finance house purchase increased for the fourth successive month in May. Approvals were at their highest level since April 2008 and 10% higher than a year earlier.’
The cost of running a home fell by 17% between April 08 and April 09. This is largely down to the fall in mortgage interest payments.
Currently housing costs account for 23% of the average UK full-time earnings, compared to 28% in 2008.
As there has been an increase in demand for houses to buy but a consistently low level of supply it has helped to stabilise house prices.
However, as Martin Ellis also commented, ‘Overall, we expect to see a continuing mixed pattern of monthly house price rise and falls over the remainder of 2009.’
