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House prices slipped last month as signs of a recovery in the market faded.
Figures from the Halifax show house prices fell 0.5% in June after a 2.6% rise in May. That takes the year-on-year house price fall to 15%.
Analysts it is wrong to draw too many conclusions from one month's figures.
Howard Archer of Global Insight said of today's numbers: “We certainly do not think that we are now at the start of a renewed sharp upward trend. While buyer interest has clearly picked up in recent months, this is only slowly translating into increased house sales.”
Economists warn many still find it hard to get mortgages as banks remain reluctant to lend. First time buyers in particular are struggling to arrange finance.
Halifax chief economist Martin Ellis claims the market is getting better.
He said: “There are further indications of a modest improvement in activity, albeit at a very low level.”
Reader views (8)
Highest unemployment in decades, Highest government debt ever, 2 unwarranted wars, worstening economic conditions, Useless NuLabour Governement and a Broken Scociety just coming out of the biggest housing bubble ever....Now why would the house prices go up ??
- R.Minto, London
This is good for everyone if you think about it carefully and over the long-term.
- Madmax, London, UK
So, something becoming more expensive in a low pay society would be a recovery! Weird place the UK.
- Never Eat Tuna Again, London
Why do you write this as if it is a bad thing.
If cars, food, holidays etc get cheaper - its a good thing to you guys, but when house prices go the same way it is the opposite.
I think we are all in agreement that it would be good for the economy for people to get spending again - if they do it out of their wages (rather than borrowing onthe credit card) and if they have more to spend (as they are not paying an arm and a leg for a ridiculous mortgage), surely this is the best outcome.
- Realist, Melbourne Australia
We need confidence
- Xuhui, Henan China
Can we get some comments from people looking to buy/sell in London or who have bought/sold. Ie; the facts! Thanks.
Bernice - prospective purchaser 2010.
- Bernice, London
Thank you Gordon Brown for your leadership and creating the conditions for this to happen.
Bring on the election.
- Dave Davies, Basingstoke, Hants
What's this this? Prices are down? But all the 'experrts' with their vested interests told us we'd hit the bottom? This can't be. Can it? Still a long way to go to the bottom.
- Investment Banker, London
