House prices move 0.2% lower in May
30th June 2010
House prices in England and Wales have fallen for the first time in a year, losing 0.2% in May, Land Registry figures show.
House prices have been stagnant over the last few months, with a rise of just 0.1% in April and no change in March, with the dip seeing the average home now costing £165,314.
The annual rate of house price growth also fell to 8.2% in May, compared with 8.5% in April, marking the first time annual house price inflation has eased since February last year.
The figures come as property intelligence group Hometrack said house prices edged ahead by just 0.1% during June, as demand from potential buyers stalled. Insurers have also reported fewer homeowners looking for new home insurance following a move, but reminded people their buildings cover should reflect the estimated rebuild cost of their home and not its market value.
The housing market suffered a slow start to the year due to a combination of the end of the stamp duty holiday, the severe winter weather and uncertainty caused by the general election.
But the market has failed to regain momentum as the impact of these factors has worn off, leading economists to speculate that the recovery may have run out of steam.
The Land Registry figures showed that the number of homes being sold had picked up in March, the latest month for which figures are available, with 48,577 properties changing hands, 37% more than in the same month of 2009.
But the figure still remains well down on the 77,408 sales completed in December.
Copyright © Press Association 2010
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