15th
Jul 2020
June saw a continual drop in house prices for the fourth month in a row and according to a mortgage lender, the trend over the next few months is for the ‘continuation of the recent modest downward trend’.
canstockphoto.com
June’s average house prices dropped by 0.1% on the month with the second quarter dropping overall by 0.9%, but still outperformed the same time last year by +2.5%.
There are signs of a very positive recovery because of a significant ‘surge’ in new mortgage applications.
June House Price Index results have highlighted the fact that the four month continual drop in house prices is for the first time since 2010, which was due to the worldwide global financial crisis.
Russell Galley MD of the lender, said: “Activity levels bounced back strongly in June, which is typically the busiest months for mortgage activity in the UK. New mortgage enquiries were up by 100% compared to May, and with prospective buyers also revisiting purchases previously put on hold, transaction volumes rose sharply compared to previous months.
“However, whilst encouraging, it remains too early to say if this level of activity will be sustained.
“Come the autumn, the macroeconomic landscape in the UK should be clearer and the scale of the impact of the pandemic on the labour market more apparent. We do expect greater downward pressure on prices in the medium-term, the extent of which will depend on the success of government support measures and the speed at which the economy can recover”.
The June mortgage lender’s House Price Index put the average price of a home at £237,616.
News Archive »