by Mark Johnston
New figures out from the Halifax shows that prices fell by 0.6% in June following on from a decrease in May where property prices stumbled with a 0.5 decrease.
Recently the UK property market seems all doom and gloom although looking longer term green shoots of recovery are starting to show. Looking at the second quarter of the year (April to June) against the first quarter (January to February) there has only been a 0.1% decreases which may mean we are on the long road to a slow recovery rather than in terminal free fall as some analysts predicted.A spokesperson for the Halifax said: “This continued the slowdown in house price growth since the beginning of the year following the moderate recovery in prices during much of 2009. This pattern is in line with our view that house prices will be broadly unchanged over 2010 as a whole.
“This continued the slowdown in house price growth since the beginning of the year following the moderate recovery in prices during much of 2009. This pattern is in line with our view that house prices will be broadly unchanged over 2010 as a whole.
“A shortage of properties for sale in 2009 contributed to an imbalance between supply and demand and was a key factor driving up house prices last year. An increase in the number of properties available for sale in recent months has helped to reduce the imbalance, relieving the upward pressure on prices. The low level of interest rates, however, continues to support housing demand.”
Nigel Lewis, analyst at property website FindaProperty.com, responded by saying: “It is no surprise that the latest Halifax house price index shows a dip in house prices; our own figures show that there has been an influx of stock over the past few months which has served to drive prices down.
Whilst analysts flight it out on which way the property market is going, many of us are left confused as different reports seem to be telling a whole different picture. Mortgagerates.org.uk has been looking at some of the conflicting and sometimes confusing reports and property indices that track the health of the UK housing market.
First off is the Halifax which covers around 25% of the UK property market. Its uses its own figures from the number of mortgage approvals to work out both the average price of a UK home and the total sales. Although they cover a large proportion of the market, some feel that they are too localised in the North of England to make sound illustrations about the market as a whole.
Rightmove is the UK property website that manages to capture a massive 50% of all homes for sale. Although they cover a big proportion of the market their biggest downfall is that they use the sellers asking price for data comparison instead of the sale prices which can be very different.
The final big player is Assetz House Price Watch. Assetz is an amalgamation of the six main UK house prices indices, Nationwide, Halifax, Rightmove, DCLG, Land Registry and Acadametrix/FT. They tend to be more precise at tracking the UK market as they gather so much data.
Rest assured, no matter which report comes out next telling us the state of the UK property market, mortgagerates.org.uk will be here bringing you up to date news and views on the mortgage and property sector.
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