June saw fall in property prices

According to recently released figures there was a drop in property prices for the month of June, following four months of price increases.

The research showed that in June there was a drop in property values in the UK, taking the average property price to £226,436, and this followed four months where property prices increased. The price fall was 0.4 percent according to the property website Right Move.

However, despite the value of properties falling for the month the average asking price was still around 6 percent higher than at the start of this year. This took the price of the average home in England and Wales to just 5.5 percent lower than in June of 2008.

However, the property website has warned that whilst there is plenty of encouraging news in terms of higher asking prices and increased interest from buyers, the lack of mortgage finance available at present means that improvement in the property market could still be hampered.

One industry official said: ‘It’s a mistake to confuse the upturn in enquiries and sales with a return to a more normal market. While conditions are much improved on the darkest days of last year, we are now starting to see some big distortions and wild swings due to the combined effects of recession and restricted mortgage availability.’

The property giant also said that recovery in the housing market was likelier to be speedier in some areas than in others.

It has recently been reported that first time buyers may be able to get mortgages with a deposit of just 10 percent over the course of this summer, which whilst much higher than the standard 5 percent before the onset of the global credit crunch is still much lower than many lenders have been demanding over the past year.

Tags: house prices, property prices







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