Prices have dipped year-on-year across the UK with the exception of the West Midlands, Yorkshire & Humberside and Northern Ireland
House prices fell in June for the third month in a row, according to the latest figures from Halifax, taking the annual fall to the steepest for 12 years.
In June, the average value of homes fell by 0.1%, with a typical UK property now worth £285,932 compared to £293,992 last August.
This is an annual decline of 2.7%, the biggest year-on-year drop in prices since June 2011.
The biggest decreases were recorded in the South of England where prices are down 3.0% average now £384,106), the largest drop since July 2011.
London recorded an annual decline of 2.6%, with the average property price now £533,057. Prices across the capital have dropped around £15,000 over the last year.
Year-on-year house prices fell across the UK, with the exception of the West Midlands, which recorded 1.5% annual growth, with average house prices now £251,139.
Yorkshire & Humberside recorded marginal annual gains (up 0.2%, £203,674), as did Northern Ireland (up 0.2%, £186,856).
Welsh house prices were down by 1.8% annual (average house price of £215,183), compared to a +1.0% increase in May – the nation’s first year-on-year fall since March 2013.
In Scotland, prices were down slightly on the year (down 0.1% to £201,774), the first annual contraction in property prices in the last three years.
The index suggests some resilience in new-build property prices across the UK, which were up by 1.9% annually.
Prices fell annually in June across all property types, but the decline was steepest for flats (down 3.1%) and terraced homes (down 2.5%).
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“These latest figures do suggest a degree of stability in the face of economic uncertainty, and the volume of mortgage applications held up well throughout June, particularly from first-time buyers,” Kim Kinnaird, director of Halifax Mortgages, said in a statement.
“That said, the housing market remains sensitive to volatility in borrowing costs.”
She added: “Concerns about persistent inflation have led to a significant increase in the cost of funding. Coupled with base rate rising by another 50bp, this contributed to a big jump in typical mortgage rates over the last month.
“The resulting squeeze on affordability will inevitably act as a brake on demand, as buyers consider what they can realistically afford to offer.”
Last week Nationwide’s monthly index suggested prices rose 0.1% in June compared to the previous month.
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