The latest Halifax House Price Index has revealed that the average house price in the UK rose by 5.7% annually despite a lower monthly change.
Figures from the report show that on a monthly basis, house prices fell by 0.3% while remaining 2.4% higher than in January – March.
Last month Halifax’s House Price Index credibility was called into question by economists who said the results were “implausibly strong.”
According to a report in The Telegraph, Samuel Tombs, chief UK economist at Pantheon Macroeconomics said: “The surge in house prices reported by Halifax cannot be reconciled with any other evidence from the housing market”.
Halifax’s latest report shows that the average house price is now £237,110 (£237,837 in May’s results) yet the bank states that over a three month period to June, prices were 5.7% higher than in the same period the previous year.
Elaborating on the results, Russell Galley, Halifax Managing Director, said: “Average house prices dipped marginally in June, falling by 0.3%, to stand at £237,110. This extends the largely flat trend we’ve seen over recent months.
“More generally, the housing market is displaying a reasonable degree of resilience in the face of political and economic uncertainty. Recent industry figures show demand looking slightly more stable, with mortgage approvals ticking along just above the long-term average.”
Halifax’s report also details homes for sale and incorporates HMRC monthly data that shows UK home sales are reducing slightly.
In May there were 89,810 home sales while in the period of March to May, the total fell 3.5% compared to the levels set in December to February.
Russell concluded: “One of the major restraining factors on the volume of transactions in the market continues to be the very low level of stock for sale. With the ongoing lack of clarity around Brexit, people will be looking for more certainty in the coming months, both to encourage them to list their property and to create the confidence needed to encourage buyers.
“Of course, the likelihood of continued historically low mortgage rates will underpin prices in the near term.”