View more on these topics

House prices down 4.2% year-on-year in May

House prices fell 4.2 per cent year-on-year in May, according to the latest house price index from Halifax.

On a monthly basis, house prices increased by 0.1 per cent from £160,393 to £160,519.

Prices fell by 1.2 per cent in the three months to May compared to the previous three months.

Halifax housing economist Martin Ellis says: “Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances.  Confidence is also weak as a result of uncertainty about the economic and employment outlook.  These factors are probably constraining housing demand and applying some downward pressure on prices.

“Overall, we expect a moderate improvement in the economy during the remainder of 2011, which combined with continuing low interest rates, is likely to support housing demand.  This should prevent a further marked fall in prices and help to stabilise property values later in the year.”


News and expert analysis straight to your inbox

Sign up


    Leave a comment


    Why register with Money Marketing ?

    Providing trusted insight for professional advisers.  Since 1985 Money Marketing has helped promote and analyse the financial adviser community in the UK and continues to be the trusted industry brand for independent insight and advice.

    News & analysis delivered directly to your inbox
    Register today to receive our range of news alerts including daily and weekly briefings

    Money Marketing Events
    Be the first to hear about our industry leading conferences, awards, roundtables and more.

    Research and insight
    Take part in and see the results of Money Marketing's flagship investigations into industry trends.

    Have your say
    Only registered users can post comments. As the voice of the adviser community, our content generates robust debate. Sign up today and make your voice heard.

    Register now

    Having problems?

    Contact us on +44 (0)20 7292 3712

    Lines are open Monday to Friday 9:00am -5.00pm