On an annual basis, house prices in June were 6.1 per cent lower.
Halifax says UK average prices have returned to the level they were at in August 2006. The UK average price remains slightly higher, 2 per cent, than two years’ ago, and more than 10 per cent higher than in June 2005 and almost 40 per cent above that in June 2003.
Chief economist Martin Ellis says: “House prices have declined by 6.1 per cent over the past year. Nonetheless, the average UK price remains slightly higher than two years’ ago and is appreciably stronger than three or four years ago.
“A strong labour market, low interest rates and a shortage of new houses underpin housing valuations. Our research shows that the labour market is the key driver of the housing market. Employment is at a record high.”