House Prices Up, Say Halifax

The rollercoastering nature of the property market has been further confirmed by Halifax’s latest index.

Over the past 12 months the average house price has dropped by 3.5%, but it could have been much worse since the average house price has increased by over £2,500 since March.

The price increase between May and June alone was 1.2%.

The market appears to be showing signs of stabilising though. Despite the previous quarter seeing a 0.5% drop in house prices, it was the smallest change since the same quarter last year had maintained its level.

Lower interest rates have also made mortgages more affordable to those with the deposit to obtain one. The rate has dropped to an average of 3.85% and mortgage approvals have also increased slightly.

The amount of disposable income needed for mortgage payments has also gone down since the 48% peak of October 2007 to the 28% needed in Quarter 2 this year.