Property prices in downward trend

Wednesday 8th July 2009, 11:00AM BST.

Property prices are down again (Picture: PA) House prices resumed their downward trend during June – dropping by 0.5 per cent, Britain’s biggest mortgage lender said today.

The fall, following a 2.6 per cent rise in May, left the average UK home costing £157,713, in line with prices during the second quarter of 2004, according to Halifax.

But it said there are signs the rate of price falls is easing.

House prices dropped by only 1.9 per cent during the three months to the end of June, the smallest quarterly fall since the beginning of 2008, and well down on declines of between five and six per cent during the three final quarters of 2008.

The annual rate at which prices are falling eased to 15 per cent, compared with 16.3 per cent in May – based on average prices in the previous three months compared with the same period last year.

Martin Ellis, Halifax hous- ing economist, said: “The mixed picture of monthly rises and falls so far this year contrasts sharply with the consistent succession of significant monthly declines recorded in 2008.

“This indicates that the underlying rate of decline in house prices has eased.”