Property prices take another hit during lockdown

average house price fell for the third month in a row in May.

The market saw a 0.2% month-on-month decline in property values over the month, which took the average house price to £237,808, according to the monthly Halifax index.

The fall in values followed monthly falls of 0.6% in April and 0.3% in March but house valuesarestill2.6%higherthen this time last year.

Russell Galley, managing director at Halifax, said: "With the full impact of lockdown measures taking a firm grip on the UK property market by

May, the average house price fell by 0.2% and reflects a continued loss of momentum following what was a strong start to the year.

“It should be noted that, withalimitednumberoftransactions available, calculating average house prices remains challenging and increased volatility is to be expected."

Halifax's research paints a less severe picture of the extent to which house prices fell in May than data released byNationwideBuildingSociety which said property values fell by 1.7% month-on-month – or more than £4,000.

According to Halifax's inThe dex, the average month-onmonth price fall in May was £506.

MrGalleyadded:"Themidmonth relaxation of restrictionsinEnglandallowedestate agentsandconveyancerstorestart operations and brought much-needed positive news.

“Indicators of buyer and seller interest quickly showed signs of improvement as buyers and homeowners attempt to kickstart transactions that had previously been put on hold. Looking ahead, we expect market activity to increase progressively as restrictions are eased further.”