House prices increase 0.3% in July

5 August 2011 | By Natalie Thomas

House prices in the three months from May to July were 0.5% higher than in the preceding three months. This is the first increase in this measure of the underlying trend since May 2010.

On an annual basis, prices in July were 2.6% lower as measured by the average for the three months to July against the same period a year earlier.

This was the second successive improvement in the annual rate from a low of -4.2% in May.

Martin Ellis, housing economist at Halifax, says: “House prices in the three months to July were 0.5% higher than in the previous three months. This was the first increase in this key measure of underlying price movements for 14 months.  Prices rose for the third consecutive month, increasing by 0.3% in July.

“Overall, there has been little change in either the level of house sales or the number of properties on the market for sale since late 2010.  These steady market conditions have helped to stabilise house prices in 2011 following last year’s modest decline.

“This pattern is expected to continue over the rest of the year with little genuine direction in either house prices or sales. Sustained low interest rates and a slowly improving economy should help to support demand in the face of pressures from weak earnings growth, relatively high inflation and higher taxes.”

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