House prices dip for second month in a row, Halifax says

HOUSE prices have fallen across the UK for a second month in a row while the number of homes sold has also dropped.

Average prices were down 0.2 per cent to £236,120 in July compared to the previous month, according to the latest Halifax index.

The last time average prices increased in a month was back in May, when the cost of a home went up by 1.2 per cent to £229,000.

But it wasn't all gloom as Halifax said the property market is stable and prices were 4.1 per cent higher if you compared them to this time last year.

House prices were also up on a three-month period by 0.4 per in May to July compared to February to April.

Average prices are down by less than £600 over the last three months, Halifax said, as the lender expects the market will continue to “tread water” each month.

Meanwhile, the number of home sales has also dropped off by 16.5 per cent compared to the previous year as June 2019 saw 84,490 properties sold, HMRC figures showed.

But Halifax noted new buyer enquiries were 10 per cent up in June thanks to low interest rates and strong wage growth.

Mortgage approvals also remained steady at just slightly over the 12-month average.

The number of mortgages given the green tick rose by 793 from May to 66,440 in June, according to the Bank of England.

Russell Galley, managing director at Halifax, said: “In the longer-term, we believe there is unlikely to be a step change in market activity until buyers and sellers see some form of resolution to the current economic uncertainty.”

Dilpreet Bhagrath of mortgage broker Trussel said buyers are still hesitant to make any property moves.

He added: “Brexit is undoubtedly playing a significant role in July’s house price dip.”

Michael Biemann, CEO of digital property lender Selina Finance, added: “No change, not step change, is the all but certain trajectory of the market during the months ahead.

“Crucially, many homeowners are going into the the Autumn prepared and the economic fundamentals, for now at least, remain strong."

Those looking to get on the property ladder might be interested to know that Tipton and Coseley Building Society have launched a new Help to Buy Isa that pays a top rate of 2.6 per cent.

While Virgin Money has brought out a 15-year fixed rate mortgage.

The Sun also took a look at the top ten property hot spots where house prices are increasing by up to £185 a day.

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