The latest index shows house prices taking a tumble and growth slowing.
UK house prices fell 0.6% between June and July, according to the latest Halifax House Price Index.
It’s the first fall in monthly house prices in this index since February and reverses the sharp increase seen last month.
[SPOTLIGHT]This means the average cost of a home in the UK, by Halifax's measurements, has fallen from £200,021 to £198,883.
House prices in the three months to July were 2.4% higher, but this pace has slowed compared to the 3.3% growth seen in the previous quarter.
Annual house price growth also eased from 9.6% in June to 7.9% in July, the lowest since December 2014.
These figures should be taken with something of a pinch of salt though as Halifax’s latest figures contradict the Nationwide index released yesterday, which showed house price growth picking up pace.
How house prices have changed
Here’s how prices have changed over the last 12 months according to the Halifax House Price Index.
|
Month/year |
Average house price |
Monthly change |
Quarterly change |
Annual change |
|
July 2014 |
£186,073 |
1.2% |
3.5% |
10.2% |
|
August 2014 |
£186,101 |
0% |
2.9% |
9.7% |
|
September 2014 |
£186,898 |
0.4% |
2.7% |
9.6% |
|
October 2014 |
£186,223 |
-0.4% |
0.9% |
8.8% |
|
November 2014 |
£187,197 |
0.5% |
0.8% |
8.1% |
|
December 2014 |
£189,304 |
1.1% |
0.3% |
7.8% |
|
January 2015 |
£192,954 |
1.9% |
1.8% |
8.5% |
|
February 2015 |
£192,182 |
-0.3% |
2.6% |
8.3% |
|
March 2015 |
£192,328 |
0.4% |
2.6% |
8.1% |
|
April 2015 |
£196,355 |
1.6% |
2.2% |
8.5% |
|
May 2015 |
£196,866 |
0.3% |
2.1% |
8.6% |
|
June 2015 |
£200,021 |
1.6% |
3.3% |
9.6% |
|
July 2015 |
£198,883 |
-0.6% |
2.4% |
7.9% |
Source: Halifax
What’s going to happen to house prices?
Halifax says house price growth is still robust despite the slowdown in July.
The bank remains confident that the economic recovery, earnings growth and low mortgage rates will continue to support housing demand along with the the strains on supply. The stock of homes available for sale fell for the third successive month in June to another new record low.
Halifax says this combination will ensure house price growth remains strong in the near-term.
However, mortgage rates are starting to increase as a Bank of England Base Rate rise becomes more likely so the longer-term picture may not be so positive.
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