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UK house prices fell for the third consecutive month, according to Halifax data on Friday.
The bank’s house price index fell 0.1% month-on-month in June, having fallen 0.2% in May.
Prices in May were initially reported as registering no monthly change.
In June, the typical UK property cost £285,932, down by around £300 from the month before.
On an annual basis, prices fell 2.6% in June, accelerating from a 1.1% fall in May.
May’s reading had marked the first annual decline in house prices since December 2021, when they fell 0.1%. The annual drop in June was the largest since June 2011.
‘With very little movement in house prices over recent months, this rate of decline largely reflects the impact of historically high house prices last summer annual growth peaked at +13% in June 2022 supported by the temporary Stamp Duty cut,’ said Kim Kinnaird, Halifax Mortgages director.
The annual figure also masks some of the fluctuations seen over the past 12 months, she noted.
‘Average house prices are actually up by +1.5%, or £4,000, so far this year, with most of that growth coming in the first quarter, following the sharp fall in prices we saw at the end of last year in the aftermath of the mini-budget.’
In fact, the figures would indicate a ‘degree of stability’ despite the economic uncertainty in the face of ever-increasing mortgage rates, she noted.
‘That said the housing market remains sensitive to volatility in borrowing costs...The resulting squeeze on affordability will inevitably act as a brake on demand, as buyers consider what they can realistically afford to offer.’
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