Residential property prices in the UK rose 0.5 percent in the second quarter from the preceding three month period, according to latest figures published by Halifax.
“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 percent in July,” said Martin Ellis, Housing Economist at Halifax.
“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,” he added.
In July, the average UK house price was marginally higher by 0.7 percent than in December 2010 on a seasonally adjusted basis, at £163,981.
“This pattern is expected to continue over the rest of the year with little genuine direction in either house prices or sales,” Ellis added.
“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.”
Halifax also noted that the number of mortgage approvals between May and June grew by four percent to 48,421, representing the highest monthly approval since May 2010.
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