Economic IndicatorsTop News

UK house prices fall for longest period since 2010, Halifax says

imageEconomic Indicators3 hours ago (Jul 07, 2020 04:50AM ET)

(C) Reuters. FILE PHOTO: An estate agent property advertisment is seen painted on a wall in London

By David Milliken

LONDON (Reuters) – British house prices fell for a fourth month in a row in June as COVID-19 restrictions continued to depress the market, the longest run of monthly declines since 2010, mortgage lender Halifax said on Tuesday.

Halifax said average house prices dropped by 0.1% in June after a 0.2% fall in May, a smaller decline than most economists had forecast in a Reuters poll. Prices in the three months to June were 0.9% lower than in the first quarter of 2020, the largest quarterly fall since 2011.

Britain’s housing market ground to a halt in April and May, when lockdowns prevented potential buyers from visiting properties. The Bank of England said lenders approved the fewest new mortgages on record in May.

Compared with a year earlier, prices are still up by 2.5%, and Halifax said new mortgage enquiries had doubled in June – in line with reports from estate agents of a bounce in activity after lockdown restrictions ended in England.

However, the mortgage lender was cautious about the outlook.

“The near-term outlook points to a continuation of the recent modest downward trend in prices through the third quarter of the year,” Halifax managing director Russell Galley said.

Many British households have been cushioned from the immediate economic impact of the lockdown by a government jobs guarantee scheme, and the Bank of England and other economists forecast a surge in unemployment when it ends later this year.

Howard Archer, chief economic adviser to consultants EY ITEM Club, said he expected prices to fall by 3% over the next few months.

“Housing market activity is likely to be limited for some time to come by the major hit that the economy has taken and the fact that consumer fundamentals have clearly taken a substantial downturn as a result of coronavirus,” he said.

UK house prices fall for longest period since 2010, Halifax says

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Related Articles

Back to top button
Close
Close
Get the daily email that makes reading the news actually enjoyable. Stay informed and entertained, for free.
Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!