Yahoo Finance UK house prices fall slightly in June
UK house prices fell slightly month-on-month in June, dipping 0.2% as the market held its breath amid general election campaigning and high interest rates. The fall was equivalent to less than £500 in cash terms.
The average house price last month was £288,455 (compared with £288,931 in May), according to Halifax's monthly monitor, with Northern Ireland recording the strongest annual house price growth in the UK.
On an annual basis, house prices posted a seventh consecutive month of year-on-year growth — prices are 1.6% higher than the same point last year.
“This continued stability in house prices – rising by just +0.4% so far this year – reflects a market that remains subdued, though overall activity has been recovering," said Amanda Bryden, head of mortgages at Halifax. "For now it’s the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices."
Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals, she added.
Read more: Pound rises after Labour's landslide victory in UK general election
Market watchers are looking to August, when it's predicted the Bank of England will start cutting its base rate. While rates have been held at 16-year highs, inflation has ticked lower to Threadneedle Street's target of 2%.
Money markets indicate that there is a more than 50% chance of a quarter of a point rate cut at the Bank’s next meeting, compared to 32% before its latest decision.
“With Britons waking up to a new Labour government today, many may wonder whether their landslide victory will inject some momentum into the UK property market," said Alice Haine, personal finance analyst at Bestinvest by Evelyn Partners.
"A stable political environment can potentially deliver a confidence boost to the housing market, particularly one that has struggled over the past year with high borrowing costs and a dearth of available and affordable stock. Buying a first home, upsizing and even downsizing are all major personal finance decisions, which is why confidence in how your country is run is vitally important."
