Twitter Facebook RSS FEEDS

House prices bounce back from post-holiday fall

Thursday, 5 July 2012 12:11 PM

House prices recovered from the lull that followed the end of the stamp duty holiday with a 1 per cent rise in June, according to Halifax.

The bank says prices were still down 0.3 per cent in last three months and 0.5 per cent in the last year but its latest house price index shows that the pace of decline has slowed considerably.

In May 2011 prices were falling at an annual rate of 4.2 per cent but the last three months have seen the annual rate stabilise at between 0 per cent and -0.5 per cent.

The last 12 months have now seen an even number of monthly rises and falls while the underlying three-monthly rate is back in negative territory following two small gains in May and April. The average price of a UK home is now £162,417.

Halifax points out that home sales in April and May were 13 per cent lower than in the previous two months, reflecting the fact that some first-time buyers brought forward purchases to beat the end of the stamp duty holiday at the end of March.

House prices edged back up to 4.37 times earnings but mortgage payments remain affordable by historic standards. Payments for a new borrower stood at 26 per cent of disposable earnings in the second quarter compared with an average of 36 per cent over the last 27 years and a peak of 48 per cent in 2007.

Martin Ellis, housing economist at Halifax, said: “The ending of the stamp duty holiday at the end of March appears to have distorted house price movements and sales in recent months. Nonetheless, despite falling back in April and May, sales remain slightly higher than a year ago.

"Continuing low levels of mortgage payments relative to income and recent increases in employment may have helped support house prices so far this year. We expect little change in prices and sales over the remainder of the year provided that the UK's economic outlook does not deteriorate significantly."

Want to be the first to know when we break a story? Follow @AboutProperty on Twitter and subscribe to our free weekly newsletter.
  

Related stories

If average house prices exceed £250,000 the stamp duty threshold may need to be raised.

Average asking prices approach stamp duty line

Average asking prices nudged even closer to the £250,000 line, raising the prospect that soon the standard amount of stamp duty paid will be three per cent instead of one per cent.

 The average UK house price is now £163,803.

Rush to use stamp duty holiday boosts prices

House prices up 2.2 per in March as first-time buyers increase transactions, says Halifax.
House prices have been flat since October 2010.

'Temporary' rise in house prices set to cool

Rush by first-time buyers to beat end of stamp duty holiday caused price rise in February, says Nationwide.

New sellers increased their prices by an average of £3,687 in March alone. Image:Thinkstock

Asking prices rise at fastest rate for eight years

Big question is whether the market bounce will survive the end of the stamp duty holiday, says Rightmove.

The experts called NewBuy a drop in the ocean. Image:Jupiter

Property experts debate 'new normal' for market

House prices flat, transactions subdued and NewBuy a drop in the ocean, says audience at HSBC event.

 March of this year has been particularly strong, with a 20 per cent hike in first-time buyers. Image:Thinkstock

First-time buyer numbers looking rosy

First-time buyers are on the increase, although numbers still remain slightly below last year's stamp duty holiday related boom.
House purchases in areas classified as "wealthy achievers" are up three percentage points since 2008.

House prices bounce back in October

Prices higher than a year ago but market still treading water, says Nationwide.

 Nick Clegg wants higher taxes for wealthy property owners.

Second home ownership at risk from high taxes

High taxes on second home ownership could lead to "localised downturns and lower demand", a luxury estate agency has warned.
Are new-builds the way to get the property market flowing?

Comment: Is new-build the answer?

Yesterday's Budget focused on encouraging buyers to invest in new-build properties - we've asked Karelia Scott-Daniels, leading London buying agent, if that will work.

 House prices are on the way up. Image:Thinkstock

Slow climb upwards for UK house prices

House prices continued their slow ascension over the last three months, picking up by 1.3 per cent according to the Halifax house price index.

Search property

Headlines

Directory

AQVA

AQVA Logo
Aqva intends to make your life refreshing, right from the start of your day until you unwind. At Aqva they offer ground-breaking products & solutions, whilst keeping in mind your wellbeing. They specialise in embellishing your home decor, kitchen and bathroom with their best quality products & solutions.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

BiGDUG

BiGDUG Logo
BiGDUG offers amazing value on a huge range of storage, shelving and racking products with thousands of happy customers across the UK. They specialise in industrial shelving and have a great range of high quality purpose-made shelving and racking at your disposal.

Bespoke Kitchens

Bespoke Kitchens Logo
Bespoke Kitchens offers you something special, very affordable and without compromising quality. Most of all though, we offer you exactly what you want for much less than you might think.

Landlord Insurance

Landlord Insurance Logo
Landlord Insurance will provide you with the peace of mind that comes from knowing that should disaster strike you and your properties are protected against financial consequences.

Moroccan Bazaar

Moroccan Bazaar Logo
An established global suppliers of Moroccan goods and furnishings, they have over 3000 products in their range and are always looking for new and exciting items to add.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Countryside Properties

Countryside Properties Logo
We have a fantastic selection of new homes throughout the UK. We offer a great range of new homes in desirable locations that are excellent value for money.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Ryder International

Ryder International Logo
The Solid Wood Flooring Company offers wood flooring of the highest quality which is made specifically for the UK market.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Splash Direct

Splash Direct Logo
Splash Direct, a leading name in online bathroom retail. With a fabulous range of bathroom suites and bathroom accessories and a strong commitment to customer experience, they aim to be the best choice for buying bathrooms and bathroom fixtures and fittings. They believe bathing needn’t be an inconvenient social ritual. Everybody deserves a bathroom space in which they feel comfortable, where legs can be stretched and the stress of a hard-day’s work can be washed away. With this in mind they offer a range that includes the best of contemporary interior design: between stylish basins, shower enclosures and toilets, everything you need for your dream bathroom.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

UK Flooring Direct

UK Flooring Direct Logo
UK Flooring Direct have over 25 years experience in the flooring industry specialising in carpet, vinyl, cork and lino flooring bringing customers the very best deals the UK has to offer.

Waltons

Waltons Logo
Waltons Garden Buildings have a fantastic range of garden sheds direct that are delivered across the UK for free. Wooden sheds are by far the most popular outdoor building in the UK and their multi-functional and practical purposes ensure that this versatile structure can be tailored to suit your needs. Waltons have a variety of different styles and sizes to suit all properties and requirements.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

WowBBQ

WowBBQ Logo
Welcome to the World of Weber. We are the largest independent online Weber BBQ retailer in the United Kingdom. WOWbbq.co.uk is a Weber Partner Store and can give you the best advice for all your Weber BBQ needs.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Greenwich: A slice of rural life in London

It should go without saying that London is not the ideal place for somebody who wants to enjoy a peaceful life in a rural setting, but anybody who has visited the Royal Borough of Greenwich would perhaps beg to differ.

Making the most of a brand new home for first-time buyers

Moving into a new home is a daunting and overwhelming experience for anyone, particularly if it's for the first time. Finding the right balance between a stylish decor and one that will last for years to come is not always easy, but there are plenty of ways of getting value for money without breaking the bank.

A guide to choosing a dishwasher

A dishwasher is a great investment for all types of home; if you have a family to look after, a dishwasher might cut the number of daily tasks around the home, while busy couples who spend a lot of time at work can relax in the evenings, letting the dishwasher tackle dirty crockery.