Summer surge sees house prices bounce back
27/08/2010
Jittery housing market analysts fearing the worst after a three-month slump in house prices have breathed a sigh of relief after house prices bounced back in July.
April, May and June had seen house prices drop following a period of post-general election instability, however, the traditional summer surge lifted prices in July, leaving the average UK property now costing £167,425.
The 0.6% drop in prices seen in June was cancelled out entirely by an equivalent gain made in July, leaving analysts' predictions of a stop-start 2010 during which the market will remain largely stable with only slow growth firmly intact.
But hopes of a return to pre-recession boom prices are still off the mark, with prices currently 16% below the peak witnessed in August 2007, Halifax figures showed.
Howard Archer, chief UK economist at IHS Global Insight, said the 0.6% rise in July did not alter his view that house prices will ease back over the rest of 2010 and soften again in 2011.
He added: "On balance, while we believe that a sharp correction in house prices is unlikely, we do expect them to ease back by around 3% over the second half of 2010."
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