House price falls 'slowed significantly' in June

Posted: 01 Jul 2008 13:10:49 GMT

The rate at which house prices are falling has slowed significantly in June according to the latest report from the Nationwide Building Society.

The rate at which house prices are falling has slowed significantly in June according to the latest report from the Nationwide Building Society.

House prices fell by just 0.9 per cent in June which was less than half the rate recorded for May and although prices are comparatively lower than the same time last year they are still four per cent higher than two years ago.

Fionnuala Earley, Nationwide's chief economist, said: "The pace of house price falls slowed significantly in June. House prices fell by 0.9 per cent during the month, less than half of the rate of the 2.5 per cent fall recorded in May. Prices in June are now 6.3 per cent lower than this time last year and have fallen 7.3 per cent from their peak last October."

She continued to explain that the market must be looked at in context: "The strength of house price growth up until last year means that prices are still 4 per cent higher than two years ago and 9 per cent higher than three years ago."

Richard Donnell, of research company Hometrack, explained that modest house price falls were "inevitable ... until such time as confidence improves", the Guardian reported.

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