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July house prices given welcome bump

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Britain’s housing market has recovered from June’s downturn over the past month, improving by 0.6% in July, new figures have revealed.

According to Halifax, the mixed pattern of monthly rises and falls this year is consistent with a slowing market and house prices could remain broadly unchanged for 2010.

Experts claim that June’s fall of 0.6%, which followed price declines in April and May, came amid uncertainty over the impact of Chancellor George Osborne’s emergency Budget and the coalition’s emergence in UK politics.

The average house price, now £167,425, is still 16% below the peak seen in 2007 and Halifax said an increasing number of properties for sale, boosted by the recent abolition of Home Information Packs (HIPs), has relieved much of the pressure responsible for driving up prices in 2009.

However, homeowners can enjoy a period of tranquillity as “low interest rates and a recovering economy are underpinning demand and continue to support the market”.

“House prices are notoriously volatile on a month-to-month basis, and can also be from survey to survey. So it is best not to attach too much importance to one piece of data,” Chief UK and European Economist at IHS Global Insight, Howard Archer, told the Guardian.

“As such, the 0.6% rise reported by the Halifax in July does not fundamentally alter our view that house prices will ease back over the latter months of 2010 and very likely soften modestly further in 2011.”

Halifax’s figures show that the market, while unpredictable, has settled into an up and down pattern that will likely last for the foreseeable future.

Those hoping to navigate the property ladder should seek advice before taking the first step in buying or selling a property.

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Written by Andrew Hodges

August 9, 2010 at 10:45 am

Posted in Comment, LinkedIn

Tagged with , ,

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