RTTNews - British house prices remained flat in June for the second consecutive month after easing for 20 months as demand grew more than the property available for sale, results of a monthly survey revealed Monday.
House prices remained flat in June from the previous month, while it declined 8.7% from the previous year, the Hometrack reported. Annual fall in June was smaller than the 9.6% decrease seen in May. House prices totaled GBP 155,600.
According to Director of Research at Hometrack, Richard Donnell, a lack of supply and rising demand have combined to prop up house prices in the last two months. However, it is unclear whether the market can recover over the course of the year.
Donnell sees the greatest risk on the demand side as many would-be buyers continue to be cautious or unable to secure sufficient equity or finance to access the market on the weak economic outlook.
The Hometrack survey noted that the number of new buyers has increased 36% since the beginning of the year, while properties coming up for sale have risen just 6.4%. Average time taken to dispose a property fell again to 9.4 weeks, while the percentage of asking prices achieved by sellers increased to 91% from 90.3% in May.
The Bank of England released the latest mortgage approvals data for the month of May. The number of mortgages approved in May was 43,414, up from 43,191 in April.
Other housing market surveys are also pointing towards stabilization in the market. The latest house price report from Halifax showed a 2.6% monthly rise in May, while the Nationwide Building Society reported a 1.2% increase in house prices for the month. By contrast, the Rightmove said house prices in June dropped 0.4% on a monthly basis after rising for four straight months.
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