House prices show signs of recovery as lockdown eases

THE fall in house prices slowed last month as England’s property market reopened, according to lender Halifax.

Average property values across the UK fell 0.2pc, the bank’s index showed, lower than the monthly falls of 0.6pc it recorded in April and 0.3pc in March. Prices are still 2.6pc higher than the same month last year, it said.

The figures were less dramatic than those recorded by Nationwide’s rival index, which said house prices were down 1.7pc in May, the largest monthly drop since 2009.

This is the first time the lenders have released their house price indices since the market was allowed to reopen in mid-may, when many buyers were thought likely to have demanded a discount in an attempt to get sales over the line.

Scotland’s market is due to restart later in June, which may spur more activity in the next few months.

Russell Galley, the managing director at Halifax, said: “We expect market activity to increase progressively as restrictions are eased further.

“However, the extent of downward pressure on market confidence and prices over the coming months will depend on how quickly the economy is able to recover.”

Judging the state of the property market is difficult because it was frozen at the height of the Covid-19 crisis.

Meanwhile, Taylor Wimpey, the house-builder, said it was seeing “very high demand” for appointments at its show homes and sales centres in England, which have reopened.

All of its workers have returned from furlough and it hopes to get permission from devolved administrations to reopen sales centres in Scotland and Wales by early next month.

It said sales were running considerably below levels at this time last year, but the order book was strong at £2.8bn. The company is also sizing up potential purchases of new land. “We are beginning to see increased opportunities on favourable terms,” it said.