June sees 2% decrease in UK house prices

10 July 2008

Halifax report a drop of 6.1% over the last 12 months

According to the UK’s largest mortgage lender, the Halifax, property prices in the UK decreased by 2% in June this year.

The decrease in prices means that the average home now costs £180,344 which is 6.1% lower than the same time last year.

The Halifax claimed that the drop means that average property prices are at the same level today as in August 2006.

Martin Ellis, chief economist at the Halifax, said: “House prices have declined by 6.1% over the past year. Nonetheless, the average UK price remains slightly higher than two years ago and is appreciably stronger that three or four years ago.

“House prices fell by 2.0% in June compared to 2.5% in May, a slight moderation in the recent rate of decline.

“A strong labour market, low interest rates and a shortage of new houses underpin housing valuations. Our research shows that the labour market is the key driver of the housing market. Employment is at a record high,” he added.