Halifax reports house price drop in July.
According to the latest survey by the Halifax, UK house prices fell 0.6% between June and July, with annual house price growth down to its lowest since December 2014, this was despite the stock of homes available for sale falling to new record lows.
Growth in UK house prices dipped to 7.9% for the three months to July, down from its 9.6% spike in the three months to June and from 8.6% in the three months to May. Economists suggested that the month-on-month fall was a market correction after the surprise jump of 1.6% in June.
Stephen Noakes, Managing Director for retail customer products at Halifax, reportedly said: “The underlying pace of house price growth remains robust not withstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand.”
The shortage of properties coming onto the market is exerting increasing upward pressure on house prices, however reports by economists expect housing market activity and house price growth to be hit by stretched house price to earnings ratios, tighter mortgage restrictions and interest rate rises announced as a possibility by the Bank of England.
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