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House prices rise, fall and flatline
House prices rose 1.2% in June, Halifax revealed today – a stark contrast to earlier reports from Hometrack and Nationwide showing prices to be down and flat last month respectively.
House prices rose 1.2% in June, Halifax today revealed – a stark contrast to earlier reports from Hometrack and Nationwide showing prices to be down and flat last month respectively.
House prices are up
House prices rose 1.2% in June, according to a new report by Halifax.
On a quarterly basis however prices remained subdued, falling 0.5% in the three months up to June compared to the previous quarter. And though this is the smallest quarterly fall in prices since the second quarter of 2010, prices are still 3.5% lower compared to the same quarter last year.
Martin Ellis, housing economist for Halifax, said: ‘Low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have been the main factors behind the recent improvement in price trends’.
Looking ahead Ellis said: ‘A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months.
‘The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand,' he added.
Steve McGuckin, UK managing director at global construction consultants, Turner & Townsend, said: 'The market's recovery is fragile and confidence is weak. And it's no surprise confidence is weak given the state of the economy, reduced disposable incomes with inflation so high and more public sector job cuts still to come'.
House prices are flat...and down
In contrast to Halifax's survey today, Nationwide last week reported that house prices had remained flat during June and are likely to continue moving sideways through the summer months.
Hometrack meanwhile reported a 0.1% fall in house prices during June, with average prices now 3.9% lower compared with this time last year.
In our video 'Why are there so many house price surveys' we explain how house prices can seemingly be up, down and flat all at the same time.
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