By Jason Theodorou
UK house prices have fallen for the third month running in June, as the housing market recovery shows further indications of decline. Property values dropped by 0.6% in June compared with May, which meant prices in the second quarter of the year were 0.1% lower than the first quarter.
The fall was caused by more properties coming on the house market, and reduced activity from house buyers. The average cost of a home in the UK is now £166,203, according to figures from Halifax. The group said that the upward pressure on prices had been reduced, with more homes being put up for sale.
Martin Ellis, housing economist for the Halifax, said that the figures were in line with their existing outlook for the housing market. Mr. Ellis said: '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'.
The figures come after disheartening data on the housing market, which has failed to pick up after a quiet start to the year.
Estate agents have reported a significant increase in the number of homes put up for sale, since the Government axed home information packs.
Howard Archer, chief UK and European economist at IHS Global Insight, said: 'The third successive drop in prices reported by the Halifax in June adds to a recent flurry of soft data on the housing market, and stokes our relative pessimism over the housing market... we increasingly suspect that house prices will only be flat over the rest of the year'.
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