The latest Halifax House Price Index released earlier today revealed a slight dip in July and mixed results overall.
From May to July in the previous quarter, house prices showed a 0.4% increase compared to the earlier months from February to April. However, the recent report suggests house prices fell by 0.2% in July.
Russell Galley, Managing Director, Halifax, said: “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. 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.
“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.
“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.”
Further key facts in the Halifax report suggested HMRC’s monthly data showed UK home sales reducing from June at 84,490 home sales. If you were to compare this from June 2018, this is a 16.5% decrease of residential transactions.
On the flip side, mortgages remain steady with an incline of 793 from May to June. (Source: Bank of England)