House prices fall in June

Posted: 07 Jul 2006 11:01:43 GMT

After months of significant increases, house prices are thought to have fallen by 1.2 per cent in June.

But according to the Halifax house price index, average property values remain 9.4 per cent higher than at the same time last year as well as 4.5 per cent higher than in January.

And significantly, Wales was the only region to register a fall in house prices during the second quarter as a whole, with affordability difficulties inhibiting previous growth. In Scotland, house prices increased by 5.7 per cent in the period, compared to increases 3.8 per cent and 3.5 per cent in the south-west and East Anglia respectively.

The 0.8 per cent fall in house prices in Wales is unlikely to cause any mass panic, given the fact that the average property price has now increased by 97 per cent in the last four years.

According to the Halifax index, the average house price in the UK has now reached £176,509, although there is still a huge amount of variation between regions.

Martin Ellis, Halifax chief economist, remains optimistic about the state of the market.

"Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006, ensuring that the market remains in good health," he said.


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