News
'Significant headwinds' for UK property market
NAEA News July 2011
The UK property market is "likely to continue to face significant headwinds", according to the latest Halifax House Price Index.
Latest figures for June saw house prices fall again - although the 0.5% drop in Q2 was the smallest quarterly fall for a year.
Housing economist Martin Ellis said: "House prices in the three months to June were 0.5% lower than in the previous quarter. This was the smallest quarterly fall in prices since the second quarter of 2010. There was a 1.2% rise in prices in June.
"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 been the main factors behind the recent improvement in price trends. A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months.
"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."
For further information, please contact Mr Michael Poole, Michael Poole Property Consultants, on 01642 254222 or email: mike.poole@michaelpoole.co.uk
