House prices rise slightly in June

House prices showed a slight rise in June, up 0.1%, according to data from Land Registry which shows that prices are now around the same levels of the summer of 2006.

Last month’s price rises were greatest in Wales, at 2.9%, while London – which continues to post the highest year-on-year increase – saw prices rise by 0.5%.

Conversely, the North East was subject to the biggest fall in prices, down 1.3%.

Land Registry had reported a 0.2% fall in house prices in May, the first negative monthly movement for over a year.

In contrast to the slight rise reported for June, several house price indices have shown that prices are starting to fall as the increasing number of homes coming onto the market is not being met by demand.

Halifax has reported house price falls in four out of the last five months, with the pace of the decline increasing.

Accountants PricewaterhouseCoopers have predicted that UK house prices are unlikely to reach their pre credit crunch peak for five, possibly ten years.