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Housing market appears to be stuck in a rut

Housing market appears to be stuck in a rut

Category: Mortgages

Updated: 04/08/2010
First Published: 04/08/2010

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

The housing market appears to be stuck in something of a rut, with little sign that things will change before the end of the year.

Following a 0.6% fall in prices during June, last month saw a rise of 0.6%, as the market struggles to gain any real momentum, figures from Halifax show.

At the end of the month, the average price of a property in the UK was judged to be £167,425.

House prices have remained broadly flat so far this year – although there are notable regional exceptions, especially in London – and the likelihood is that it will continue into 2011.

"The mixed pattern of monthly rises and falls over the first seven months of the year is broadly consistent with a slowing market," commented Martin Ellis, housing economist.

"It is also in line with our view that house prices will be broadly unchanged over 2010 as a whole.

"The increase in the number of properties for sale over the past few months, boosted by the recent abolition of HIPS, has relieved much of the pressure that was driving up prices in 2009."

Figures show that house prices in July were 4.9% higher on an annual basis as measured by the average for the last three months against the same period a year earlier.

This has fallen from a 6.3% yearly rise in June and the recent high of 6.9% in May.

Prices are actually now 0.8% lower than they were at the end of 2009 and 16% below the August 2007 housing market peak.

If a break in the upward momentum of house prices is enough to tempt you to either upsize or attempt to get a footing on the property ladder, check Moneyfacts.co.uk's mortgage Best Buy tables to find the deal to suit you.

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