UK house prices in downward trend
HOUSE prices rose just 0.1 per cent in May, the latest Halifax index revealed yesterday, barely recovering from a sharp 1.4 per cent drop in April.
The underlying decline in prices was shown by a 1.2 per cent fall in the three-monthly measure, which irons out some of the monthly volatility in the figures.
Prices in the three months to May were 4.2 per cent lower than at the same time last year.
“Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances,” said Halifax economist Martin Ellis.
“These factors are probably constraining housing demand and applying some downward pressure on prices.”
The number of houses sold in the opening four months of the year was down five per cent compared to last year, according to official data listed in the report.
However, there are “tentative signs of an improvement in activity”, Halifax said.