House Prices Fall Further In June

(Telegraph) – UK HOUSE PRICES FELL IN JUNE, sliding 0.5% according to the Halifax, dampening hopes that the market may be recovering.

Economists had expected a 0.3% gain for the month after average prices rose 2.6% in May β€” the steepest rise for seven years. That news sparked some hopes that the declines of the past 18 months may be ending.

However, Martin Ellis, the housing economist for the Halifax, said he expects to see a ‘continuing mixed pattern of monthly house price rises and falls over the remainder of 2009.’

He added: ‘Whilst there have been encouraging recent signs of improvement, the outlook for the UK economy remains uncertain with unemployment set to continue rising for sometime.’

House prices are 15% down compared to June 2008, with an average price of Β£157,713, although the fall of 1.9% in the second quarter of 2009 was the smallest since the first quarter of last year. Mr Ellis said that, with mortgage approvals 10% higher than a year ago, the decline in values did at least appear to be slowing.

However, the fall in June underlines concerns that bank lending is still not sufficient to drive a recovery.

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