Housing prices flatten in Q2

Annual house price growth in the UK has eased to 2.6% in the three months to June this year, compared with the same period in 2016, according to the latest research.

The Halifax House Price Index has also found that house prices in Q2 2017 were 0.1% lower than in Q1 2017.

House sales declined by 3% between April and May to 100,170.

The volume of mortgage approvals for house purchases increased between April and May (up 0.2% to 65,200) for the first time since January having fallen between February and April.

Martin Ellis, housing economist at Halifax, said: “House prices have flattened over the past three months.

“Overall, prices in the three months to June were marginally lower than in the preceding three months.

“The annual rate of growth has fallen to 2.6%; the lowest rate since May 2013.

“Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages.

“This – combined [with] the new stamp duty on buy-to-let and second homes in 2016 – appears to have weakened housing demand in recent months.

“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale should help continue to underpin house prices over the coming months.”

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