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House Price Growth Steadies in June Says Halifax

Mortgage lender Halifax released their latest House Price Index showing that in the three months to June, house prices increased from the previous three months but at a slower annual rate.

Mortgage lender Halifax released their latest House Price Index showing that in the three months to June, house prices increased from the previous three months but at a slower annual rate.

House prices in the three months to June were 1.2% higher than the previous quarter (January to March), according to figures from Halifax’s June House Price Index, with the average house price now set at £216,823.


In terms of annual growth, house prices in the three months to June were 8.4% higher than in the same three month period a year earlier – down from 9.2% in May and the lowest since July 2015, which stood at 7.8%.


House prices increased by 1.3% in June from the previous month, up 0.4% on May's monthly increase of 0.9%.


Although, Halifax emphasises that quarterly comparison are a more reliable indicator of the current market trend as monthly figures can sometimes be erratic.


Halifax also reported that the ratio between property prices and wages rose in June, with the average house price now standing at 5.7 times the average earnings in the UK - the highest level since October 2007.


Commenting on the results, Martin Ellis, Halifax housing economists, said that “house prices continue to increase, albeit at a slower rate, but this precedes the EU referendum result, therefore it is far too early to determine any impact since.”


Whilst Ellis commented that it was too soon to know the effects of Brexit on property prices, the index did report that the effect of the new Stamp Duty surcharge has been felt within the market.


Following a sharp increase in sales March, April saw a decline in the number of properties sold following the introduction of the 3% surcharge on April 1st for second homes and buy-to-let investments. May witnessed property sales recover, rising by 1.5% on April's figures to 89,700 property sales.


As houses prices continue to rise, earlier this week figures published by hybrid estate agency eMoov showed that demand for property in June had increase 3%.


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