House prices fall for second month in UK
On a monthly basis, house prices fell in the UK by 0.2% in July and by 0.4% quarter on quarter, according to data from the latest lender index, taking the average to £236,120. It means that prices are still 4.1% above where they were in July 2018, but this comes against a backdrop of low growth in the corresponding period in 2018, according to the Halifax.
‘The average UK house price fell slightly for a second month, as the market continues to tread water with marginal increases or decreases in each monthly period,’ said Russell Galley, Halifax managing director. ‘That said, it’s worth remembering that while economic uncertainty continues to weigh on the market, the overall trend actually remains one of comparative stability, with average prices down by less than £600 over the last three months,” he pointed out.
‘We have seen a reported drop off in the number of properties sold during the early months of summer, which may lead some to speculate a downturn is on the horizon. However, new buyer enquiries are up, and favourable mortgage affordability, driven by low interest rates and strong wage growth, should continue to underpin prices for the time being,’ he explained.
‘In the longer term, we believe there is unlikely to be a step change in market activity until buyers and sellers see some form of resolution to the current economic uncertainty,’ he concluded.