House prices in the UK recorded a drop of 0.5 per cent during the second quarter of the year, compared to the first three months, according to data from Halifax. Year-on-year property values have fallen by 3.5 per cent, however, since May 2011 they have risen 1.2 per cent.
Martin Ellis, housing economist, explained low interest rates and improvements in the job market were among the factors that helped boost prices last month over May. He also noted that this is the lowest quarterly decrease since the same three-month period in 2010.
"A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months," Mr Ellis stated. Halifax also pointed to figures from the Bank of England which showed that the number of mortgage approvals rose between March and May. According to the financial services provider, the low base rate has helped make financing a property purchase more affordable.
Meanwhile, those who own real estate as an investment may find that they can push rents up over the next few months, with a recent survey by HomeLet revealing that average rental values increased in June compared to May and now stand at 750 GBP per month.