House prices dip for second consecutive month

House prices have fallen for the second consecutive month, according to Halifax.

Across the UK, the average house price in July was £236,120.

This was a month-on-month fall of 0.2% following a 0.4% fall in June.

However, property values were still 4.1% higher than they were a year ago, possibly due to the relatively low levels of growth seen during 2018.

Russell Galley, managing director at Halifax, said: “The average UK house price fell slightly for a second month, as the market continues to tread water with marginal increases or decreases in each monthly period.

“That said, it’s worth remembering that while economic uncertainty continues to weigh on the market, the overall trend actually remains one of comparative stability, with average prices down by less than £600 over the last three months.

“We have seen a reported drop-off in the number of properties sold during the early months of summer, which may lead some to speculate a downturn is on the horizon.

“However, new buyer inquiries are up, and favourable mortgage affordability – driven by low interest rates and strong wage growth – should continue to underpin prices for the time being.”

He said the long term forecast is for little change “until buyers and sellers see some form of resolution to the current economic uncertainty”.

Howard Archer, chief economic adviser at EY ITEM Club said: “Housing market activity seemingly got some help from the avoidance of a disruptive Brexit at the end of March, but the overall benefit looks to have been limited.”

Mark Harris, chief executive of mortgage broker SPF Private Clients, said: “The summer is always quieter as people head off on their holidays but with new buyer inquiries up, there are encouraging signs that business may pick up in the autumn.

“However, until the Brexit deadline of 31 October has passed, it seems very unlikely that there will be a serious uptick in activity.”

(c) Sky News 2019: House prices dip for second consecutive month