Hometrack survey adds to evidence of a double-dip in the UK housing market
HOUSE prices fell for the first time in 15 months in June, according to the monthly Hometrack national housing survey published today.
The survey showed that house prices fell by 0.1 per cent last month, trimming the annual increase to 2 per cent, mostly as a result of slumping demand and a flood of properties onto the market.
Hometrack sees continued weakness in the market. Richard Donnell, director of research at Hometrack, said: “Further modest price falls are inevitable over the second half of the year as the volume of homes for sale continues to rise and demand remains weak on the back of concerns over the wider economic outlook and uncertainty over the impact of recently announced cuts in government spending.”
House prices in the capital, which had led the recovery in the property market, saw the biggest monthly decline of 0.2 per cent on the back of a 2.7 per cent drop in demand and 4.5 per cent growth in supply. North and south west London saw the largest falls of 0.5 per cent and 0.6 per cent respectively.