House prices fall during June

Posted 21/06/2009

The recent increase in house prices across the UK has abated, according to new figures from Rightmove.

Statistics showed that in June, average property values fell by 0.4 per cent on the previous month to £226,436.

This comes after a series of gradual rises in house prices in the UK, which led to some optimism that more people could be planning to make a property purchase.

However, Miles Shipside of Rightmove, insisted that confusing an upturn in sales and enquiries with a return to a “more normal” housing market would be a mistake.

“While conditions are much improved from last year, we are now starting to see some big distortions and wild swings,” he commented.

Mr Shipside attributed this to the effects of the economic downturn and the limited availability of mortgage finance.

According to figures from the Council of Mortgage Lenders, gross mortgage lending fell by two per cent between April and May to £10.3 billion.

This is 58 per cent down on the figure recorded a year earlier.