Up and down – asking prices soar ahead of reality

Prices fell by 0.5% in June, with the average price of a property now standing at £157,713 – 15% down on this time a year ago.

According to the Halifax, house prices have fallen every month of this year apart from January and May.

This is roughly in line with Nationwide, which reported a 0.9% rise in May. But although Nationwide’s average house price – at £156,442 – is very close to Halifax’s, Nationwide says that average house prices are now only 9.3% lower than a year ago. Nationwide has also reported house price rises in three of the last four months.

However, completely out of sync with both is the average asking price of property on Rightmove, which now stands at £226,436 – a 0.4% fall on May’s figure, down just 5.5% year on year, and far higher than either Halifax’s or Nationwide’s selling prices.

RICS chief economist Simon Rubinsohn said of the latest Halifax figures: “It is far from clear that prices have bottomed.”

Propertyfinder director Nicholas Leeming said: “The short-sighted mortgage rate hikes by lenders in June dented public confidence and set back house prices, a blot on the housing market landscape after the positive indications of recent weeks.

“This doesn’t mean the housing market revival has ground to a halt at the first sign of trouble, but it serves as a reminder that the property market is still in intensive care.”