Halifax highlights May house price drop

Halifax has reported a 2.4 per cent drop in the average price of a property in the UK over the course of last month.

The financial services firm maintains that the fundamental aspects of the economy are strong and has urged homeowners and anyone facing debt management difficulties to maintain a sense of perspective in light of the latest data.

Average property prices fell by 2.5 per cent in March and 1.3 per cent in April but Halifax has pointed out that the five years prior to August 2007 saw an increase in typical house values nationwide of around 79 per cent.

The bank’s chief economist Martin Ellis explained that the slump in house prices has been caused primarily by a “squeeze on spending power” and a “reduction in credit availability”.

Including mortgage arrears, the typical British family has a debt management burden worth around £57,600, according to figures from Credit Action.

Written by Dan Mather