House prices stalling on weaker demand

PROPERTY prices are still rising – but at a considerably slower pace, the latest data from Halifax has revealed.

Prices in the second quarter of the year were 0.2pc lower than in the first quarter, according to the Halifax house price index. But in the three months to July, prices were 2.1pc higher than in the same three months in 2016, and prices rose by 0.4pc from June to July.

The latest data shows that prices have been falling successively for the past four quarters, the first time this has happened in almost five years. However, buyers are still having to fork out more for their bricks and mortar than they did last year.

The average house price in the UK last month was £219,266 − 10pc above the August 2007 peak and 42pc higher than the low point of £154,663 in April 2009, towards the end of the recession.

Russell Galley, managing director of Halifax, said: “House prices continue to remain broadly flat, as they have since the start of the year.”

He said the squeeze on spending power, together with the impact of stamp duty changes in 2016 had contributed to weaker housing demand.

“However, a low mortgage rate environment, combined with a shortage of properties for sale, should help continue to support house prices,” he said.