House prices in the three months to June were 2.3 per cent higher than in the three months to March, but dipped 0.6 per cent for June itself, according to Halifax house price index figures released today.
This was the fourth monthly price fall since last December.
When the quarterly measure is use, house price growth has remained steady in a narrow range of 2.0 per cent – 2.3 per cent since June 2013. Prices in the three months to June were 8.8 per cent higher than in the same three months a year earlier.
The index also showed home sales edged down by 3 per cent in May to below 100,000 for the first time in six months; however, transactions are still 15 per cent higher than in May 2013.
New buyer enquiries fell for the sixth month in a row in May. That’s a sign that some of the market “hype” could be starting to fade, according to Brian Murphy, head of lending at Mortgage Advice Bureau.
“The improving outlook for housing is certainly tempting some owners to cash in on their equity gains, but the hoard of buyers will be kept in check as people – especially would-be first time buyers – pause to gather the necessary funds to keep up with rising costs.
“New affordability measures are also injecting a sense of perspective as borrowers are encouraged to think more carefully than ever about taking out a loan.”
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