The average house in the UK now costs £162,417. In May the average price was £160,781 and in April the figure was even lower at £160,073.
The Halifax House Price Index revealed that house prices during the three months leading up to June were 0.3% lower than the previous three months and 0.5% lower than the same period a year ago.
Whilst sales during April and May were 2% higher than the same period last year, a subdued mood still hangs over the housing market, particularly in terms of buying activity. The combined number of property sales during April and May were down 13% when compared to the previous two months, indicating many first-time buyers were keen to beat the end of the stamp duty holiday at the end of March.
The lowest house price over the past twelve months was back in December when the average price dropped to £159,888.
In terms of mortgage repayments, the average monthly repayment for a new borrower has remained below the long-term average as a proportion of disposable earnings, at 26% during the second quarter of this year.
Martin Ellis, housing economist, said: "House prices in the three months to June were 0.3% lower than in the previous three months. Prices increased by 1.0% in June alone as house prices continue to fluctuate on a monthly basis with an even number of falls and rises over the past year.
"There has been a marked improvement in the annual rate of change over the past 12 months. A year ago, in May 2011, house prices were falling at an annual rate of 4.2%. In contrast, there has been broad stability recently with the annual rate between 0% and - 0.5% in each of the past three months," he said.
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