According to Halifax, this is the first time since 2010 house prices have decreased for four months in a row.
Over the last quarter – from April to June – prices fell by 0.9%, according to Halifax, and there was an annual increase of 2.5%. It means the average UK house price is now £237,616.
Russell Galley, managing director of Halifax, said although the decrease was small it was ‘notable’ because it was the fourth decline in a row.
But, he added: “Activity levels bounced back strongly in June, which is typically the busiest month for mortgage activity in the UK.
“New mortgage enquiries were up by 100% compared to May, and with prospective buyers also revisiting purchases previously put on hold, transaction volumes rose sharply compared to previous months.
“However, whilst encouraging, it remains too early to say if this level of activity will be sustained.”
Future prospects
The data comes just as chancellor Rishi Sunak is expected to announce measures in his Summer Economic Update tomorrow (Wednesday) to help get the economy moving again following the pandemic.
Experts analysing Halifax’s data said any announcement he makes, particularly around stamp duty, would be help put today’s figures into context in terms of how the market could look going forward.
Jeremy Leaf, north London estate agent and a former RICS residential chairman, said: ‘Not surprisingly this widely-respected index reports two different elements of the market. On the one hand, prices have fallen for the fourth consecutive month but new mortgage enquiries are surging as buyers and sellers emerge from lockdown.
“The direction of travel in coming months will depend on the degree of support offered by the government and how quickly the economy can recover when furlough in particular is withdrawn.
“Another factor of course now is stamp duty and any other measure introduced by the Chancellor to increase activity.
“Certainly, we are starting to see supply increasing and greater realism in sales agreed so do not expect prices to rise sharply in the near term.”
