Halifax: prices up just 0.4% in June

Posted: 04 Jul 2007 15:48:19 GMT

House price increased by just 0.4 per cent in June, new figures suggest, as the slowdown in the property market appeared to continue.

House price increased by just 0.4 per cent in June, new figures suggest, as the slowdown in the property market appeared to continue.

The latest statistics from Halifax showed that average house prices grew by less that 0.5 per cent for the second month in a row, with growth for the quarter standing at just two per cent.

This compares with price rises of 4.2 per cent seen at the end of last year.

"These figures indicate that house price inflation is slowing," commented Martin Ellis, Halifax's chief economist.

"The increases in mortgage rates and the persistence of negative real earnings growth in the early months of 2007 are expected to cause annual house price inflation to slow further over the coming months.

"Solid economic fundamentals and a shortage of housing supply will, nonetheless, continue to support house prices."

The figures will nevertheless come as bad news to homeowners, who will be concerned over the long-term prospects of their property investments.

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