House prices are seeing a modest month-on-month increase, but still remain lower than the same time last year, according to the latest indices.
The average UK house price crawled to £168,205 from £167,208 last month, as reports suggest the market is doing little more than “shuffling sideways”.
Nationwide’s index has prices remaining flat since May but down 1.1pc annually, while Halifax has prices up 0.1 pc in the same month and down 4.2pc annually, while the Land Registry has prices down 2.3pc annually.
June’s slight increase has come at a time when mortgage approval figures hit the lowest level this year – which may dampen sellers’ confidence.
Overall forecasts are shy of optimistic. House prices are due to come under more pressure, with the latest Royal Institute of Chartered Surveyors (RICS) tipping the market in the buyer’s favour, showing an increase in the number of homes being put up for sale.
Rightmove’s latest report stated that home sellers’ expectations have “romped away from reality” and asking prices are heading for a fall.
They go on to predict that asking prices are “likely to fall by up to 7pc” in this year’s second half, which could improve buyers’ bargaining power.
Commenting on the figures, Robert Gardner, Nationwide’s Chief Economist, said: “Stability remained the theme in June, with house prices flat over the month.
“The property market has moved sideways over the past six months, and June’s data suggest that trend is being maintained through the summer months.
He described the findings as “encouraging developments” for households, but stressed that to date this hasn’t been enough to reinvigorate the housing market.
“Employment has been edging up and consumer confidence surged in May,” he said, “although the latter may have had more to do with unusually warm weather and extra bank holidays, rather than signalling the arrival of any recovery-related feel good factor.”
However, he said the positives have not been enough to make up for the ongoing squeeze on households.
London was the only region to buck the trend.
Reports showed house prices down year on year in every region except the capital, with prices now at an all-time high.
While Northern Ireland led the declines in the second quarter with a 4.1pc drop with Scotland trailing behind at 3.2pc, London prices jumped 2.0pc, according to Nationwide.
But London’s outer metropolitan region saw the biggest decline of any for the second quarter alone, posting a 0.9pc drop in the three months to June. Year on year, house prices in the West Midlands have fallen most, down 2.7pc compared with the same period in 2010.
By Josie Ensor, from http://www.telegraph.co.uk/finance/newsbysector/constructionandproperty/8617770/House-price-indices-show-markets-remain-stagnant.html