House prices drop in June

UK average prices have returned to the level they were at in August 2006, according to the lender. However, it does remind us that the UK average price remains slightly higher (2%) than two years' ago, more than 10% higher than in June 2005 and almost 40% above that in June 2003.

UK house prices have risen by 196% (£119,379) since the trough of the 1990s housing market downturn in July 1995. Prices increased for 48 consecutive quarters between 1995 Q4 and 2007 Q3 with the exceptions of 2000 Q2 when prices fell slightly (-0.1%) and 2005 Q2 (0.0%).

According to the Halifax, “The housing market continues to be underpinned by sound fundamentals. All our research indicates that the labour market is the key driver of the housing market. Employment is at a record high of 29.55 million. Total employment increased by 76,000 over the three months to April compared with the previous quarter and by 446,000 over the past year.”