Halifax house price survey shows sales fail to bloom in Spring
The latest Halifax house price index suggests the UK property market could be a late bloomer in 2011.
In May, growth of 0.1 per cent over the previous month contrasted with a quarterly fall of 1.2 per cent and an annual drop of 4.2 per cent in house prices, when seasonally adjusted.
The typical home in the UK now costs £160,519, after a 1.4 per cent slump in April alone.
Howard Archer, chief UK and European economist at IHS Global Insight, said before the publication of the figures that he was expecting a 0.2 per cent rise in May.
"We suspect that modest falls in house prices are more probable than not over the coming months as tighter fiscal policy and the possibility of gradually rising interest rates before the end of 2011 maintain pressure on the housing market," he predicted.
It is not only the average price of a property in the UK that is now under pressure; the common link between pricing and market activity is also emerging.
Mr Archer pointed out that 45,166 mortgages were approved in the most recent Bank of England data - making April the lowest point for four months and the most subdued month of 2011 so far.
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