UK house prices keep rising, says Halifax

But slight drop in June figures adds further evidence to suggestions of a slowdown

House prices between April and June were 2.3 per cent higher than the previous three months, according to the latest report.

The Halifax index shows that, while house prices fell slightly by 0.6 per cent in June compared to May, they are still 8.8 per cent higher than this time last year, standing now at £183,462 (although other house price indices vary considerably in estimating this figure).

Earlier this month Nationwide statistics put the annual rise higher at over 11 per cent but it chief economist Robert Gardner  predicted that the pace of growth would start to slow soon.

Overall, sales of homes were down by three per cent in May, dropping below 100,000 for the first time in half a year although transactions were still 15 per cent higher than in May last year.

Stephen Noakes, Mortgages Director, said that housing demand was being supported by an economic recovery that is 'gathering pace'.

Mark Harris, chief executive of mortgage broker SPF Private Clients, said the three month average was a more reliable figure than the month-on-month figures which showed a dip.

"With estate agents reporting that applicant levels are falling, fewer sealed bids and packed open houses, some moderation is returning to the market," he said. "As more property comes up for sale, with vendors worrying that they may have missed the boat, the heat has come out of the housing market.

"The threat of an interest rate rise is there in the background, influencing people's willingness to take on more debt. Fixed-rate mortgages are still cheap however, although they are edging up slightly. The mortgage market review is having an impact and slowing things down although we expect this to be temporary as lenders get to grips with the new regime."

Andy Hatoum, co-founder of the property search engine Placebuzz.com agreed that the monthly figures should be taken with a pinch of salt and that the overall direction of prices was 'still skyward'.

"After runaway month-on-month growth in May, June’s slight drop would seem like a sudden reversal," he said. "But in reality it’s a case of the market pausing for breath. As prices begin to top out in some areas, such volatility is inevitable.

"There is still plenty of momentum in much of the country, especially in those areas where the boom took longer to get going. Robust economic growth and cheap credit have combined to stoke confidence, and convinced many of us that the only way is, and will continue to be, up.

"New buyer enquiries may be dipping, but the Bank of England’s modest measures to tighten lending conditions will do little to temper the wave of optimism that continues to drive prices upwards. Even if the excesses of London and the South East may be close to peaking, the strong growth in other regions still has a long way to run."

PROMOTED VIDEO
Voices
Pupils educated at schools like Eton (pictured) are far more likely to succeed in politics and the judiciary, the report found
voices
Arts and Entertainment
Simon Cowell is less than impressed with the Strictly/X Factor scheduling clash
tvSimon Cowell blasts BBC for breaking 'gentlemen's agreement' in scheduling war
News
Orson Welles made Citizen Kane at 25, and battled with Hollywood film studios thereafter
people
News
Brad Pitt and Angelina Jolie reportedly married in secret on Saturday
peopleSpokesperson for couple confirms they tied the knot on Saturday after almost a decade together
Sport
footballAnd Liverpool are happy despite drawing European champions
News
i100
News
ebooksAn evocation of the conflict through the eyes of those who lived through it
Arts and Entertainment
tv
News
i100
Arts and Entertainment
Diana from the Great British Bake Off 2014
tvProducers confirm contestant left because of illness
Arts and Entertainment
Lisa Kudrow, Courtney Cox and Jennifer Anniston reunite for a mini Friends sketch on Jimmy Kimmel Live
tv
Life and Style
fashion

Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Client-Side web developer (JQuery, Javascript, UI, JMX, FIX)

Negotiable: Harrington Starr: Client-Side web developer (JQuery, Javascript, U...

Structured Finance

Highly Competitive Salary: Austen Lloyd: CITY - An excellent new instruction w...

SQL Server Developer

£500 per day: Harrington Starr: SQL Server Developer SQL, PHP, C#, Real Time,...

C#.NET Developer

£600 per day: Harrington Starr: C#.NET Developer C#, Win Forms, WPF, WCF, MVVM...

Day In a Page

Ukraine crisis: The phoney war is over as Russian troops and armour pour across the border

The phoney war is over

Russian troops and armour pour into Ukraine
Potatoes could be off the menu as crop pests threaten UK

Potatoes could be off the menu as crop pests threaten UK

The world’s entire food system is under attack - and Britain is most at risk, according to a new study
Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Gangnam smile: why the Chinese are flocking to South Korea to buy a new face

Seoul's plastic surgery industry is booming thanks to the popularity of the K-Pop look
From Mozart to Orson Welles: Creative geniuses who peaked too soon

Creative geniuses who peaked too soon

After the death of Sandy Wilson, 90, who wrote his only hit musical in his twenties, John Walsh wonders what it's like to peak too soon and go on to live a life more ordinary
Caught in the crossfire of a cyber Cold War

Caught in the crossfire of a cyber Cold War

Fears are mounting that Vladimir Putin has instructed hackers to target banks like JP Morgan
Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years

Salomé: A head for seduction

Salomé's feminine wiles have inspired writers, painters and musicians for 2,000 years. Now audiences can meet the Biblical femme fatale in two new stage and screen projects
From Bram Stoker to Stanley Kubrick, the British Library's latest exhibition celebrates all things Gothic

British Library celebrates all things Gothic

Forthcoming exhibition Terror and Wonder: The Gothic Imagination will be the UK's largest ever celebration of Gothic literature
The Hard Rock Café's owners are embroiled in a bitter legal dispute - but is the restaurant chain worth fighting for?

Is the Hard Rock Café worth fighting for?

The restaurant chain's owners are currently embroiled in a bitter legal dispute
Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival

In search of Caribbean soul food

Caribbean cuisine is becoming increasingly popular in the UK ... and there's more to it than jerk chicken at carnival
11 best face powders

11 best face powders

Sweep away shiny skin with our pick of the best pressed and loose powder bases
England vs Norway: Roy Hodgson's hands tied by exploding top flight

Roy Hodgson's hands tied by exploding top flight

Lack of Englishmen at leading Premier League clubs leaves manager hamstrung
Angel Di Maria and Cristiano Ronaldo: A tale of two Manchester United No 7s

Di Maria and Ronaldo: A tale of two Manchester United No 7s

They both inherited the iconic shirt at Old Trafford, but the £59.7m new boy is joining a club in a very different state
Israel-Gaza conflict: No victory for Israel despite weeks of death and devastation

Robert Fisk: No victory for Israel despite weeks of devastation

Palestinians have won: they are still in Gaza, and Hamas is still there
Mary Beard writes character reference for Twitter troll who called her a 'slut'

Unlikely friends: Mary Beard and the troll who called her a ‘filthy old slut’

The Cambridge University classicist even wrote the student a character reference
America’s new apartheid: Prosperous white districts are choosing to break away from black cities and go it alone

America’s new apartheid

Prosperous white districts are choosing to break away from black cities and go it alone