6th July 2011
House prices showed a surprise rise in June – but it was still 3.5% lower than a year ago, says the report. House prices rose significantly by 1.2% in June, according to figures released by the Halifax. However, most of Britain's homeowners have seen their property value fall over the past year.
The bank said the 0.5% decline in house prices during the last three months was the smallest quarterly fall for a year.
House prices fell by 3.5pc over the last year to a national average of £163,049, according to Halifax, but you would need to pay nearly 25% more than that to buy a car parking space in central London, calculates Ian Cowie in the Daily Telegraph.
Fresh evidence of how the capital's property market is diverging from the rest of the country can be seen in the fact that people are paying more than £200,000 to buy car parking spaces in central London, says the Telegraph report.
Martin Ellis, the Halifax housing economist, said low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have caused the recent rise in prices.
Typical mortgage payments for a new borrower have fallen from a peak of 48% of average disposable earning in mid-2007 to 28% in the last three months. The long-term average over the past 25 years is 37%.
"A slowly improving economy and sustained low interest rates should help to support broad stability over the coming months," he said.
"The market is, however, likely to continue to face significant headwinds which are expected to constrain housing demand. Low earnings growth, higher taxes and relatively high inflation are all continuing to put pressure on household finances."
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