UK property prices slow slightly as stability reigns

 
UK property prices slow slightly as stability reigns

House price growth in the UK is being hailed as being in a stable position at present as the rate of increase slowed between June and July, according to the latest statistics that have been released with regards to the market this week. 

For a market to be strong and have the potential for long-term growth, it is impossible for prices to simply keep rising, or else we end up seeing a property sector in which the market completely overheats, so these latest slight drops are nothing to be overly concerned about. 

According to the latest report released this week by Halifax, the price of property fell slightly between June and July, dropping by 0.6 per cent. This is also knocked the annual rate of increase down to 7.9 per cent compared to the same time in 2014. 

It's also worth noting, however, that a fall in prices between June and July could be largely down to the quick pick up in people buying homes in June as a result of the positives seen from the result of the general election, before which there had been a degree of uncertainty in the market. 

And although Halifax reported a fall in prices between the two months, Stephen Noakes, managing director of retail customer products at the Halifax, said that there is still plenty of evidence to show that there should be confidence among homeowners rather than worry. 

"The underlying pace of house price growth remains robust notwithstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand," said Mr Noakes. 

"Supply is highly restricted with the stock of homes available for sale falling further to new record lows. This combination of well supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near term."