House prices experienced a bigger monthly fall than analysts had expected in June, knocking £1,100 off the average property value, according to the Halifax.
However, despite this drop – the fourth monthly price fall since last December – the value of the average house rose by £16,000 in the year to June, their biggest annual leap in seven years.
Prices in the three months to June, which are widely considered a better indicator of house price growth than the lender’s monthly figures, were 2.3% higher than in the three months to March and 8.8% up on the same three months in 2013.
This brings the average house price to £183,462 compared to £167,668 in June 2013 and makes the typical property value five times the national average earnings of a full-time male employee.
“Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish,” said Stephen Noakes, mortgages director at the Halifax.
via The Guardian
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