View the article online at http://citywire.co.uk/money/article/a602216
UK house prices rise, but market remains on a 'knife edge'
UK house prices rose 1% in June, but are down on an annual basis, Halifax says.
UK house prices rose 1% in June, according to Halifax.
In the three months to June, however, prices fell 0.3% compared with the previous quarter, and they are down 0.5% over the year.
House prices have continued to fluctuate on a monthly basis, with an even number of falls and rises over the past year, but there has been a marked improvement in the annual rate of change, explained Halifax’s housing economist Martin Ellis.
‘A year ago, in May 2011, house prices were falling at an annual rate of 4.2%,’ Ellis said. ‘In contrast, there has been broad stability recently with the annual rate between 0% and - 0.5% in each of the past three months.’
And although the end of the stamp-duty holiday for first-time buyers at the end of March appears to have distorted house price movements and sales in recent months, sales nonetheless remain slightly higher than a year ago, he added.
Looking forward, Ellis said Halifax expects little change in prices and sales over the remainder of the year – provided the UK’s economic outlook does not deteriorate significantly.
Russell Quirk, director of estate agent website eMoov.co.uk, warned that the housing market is still on a knife edge.
‘The improvement in the annual rate of change suggests that prices have bottomed out, but a "black swan" event coming in from Europe could add further downward pressure,’ he said.
The average house price is now £162,417, said Halifax.
News sponsored by:
Making the most out of Europe's potential means seeing things differently. Learn more about how BlackRock's focused approach to investing in Europe helps investors unlock the continent's vast potential.
In this guide to investment trusts, produced in association with Aberdeen Asset Management, we spoke to many of the leading experts in the field to find out more.
More about this:
More from us
- House prices up again thanks to 'robust' market in South
- Outlook for house prices remains 'highly uncertain'
- House prices hit standstill in 'fragile and lacklustre' market
What others are saying
Tools from Citywire Money
From the Forums+ Start a new discussion
Weekly email from The Lolly
Get simple, easy ways to make more from your money. Just enter your email address below
An error occured while subscribing your email. Please try again later.
Thank you for registering for your weekly newsletter from The Lolly.
Keep an eye out for us in your inbox, and please add email@example.com to your safe senders list so we don't get junked.