House prices fall again

The average house price in the UK is now £177,351, according to Halifax’s House Price Index for July.

A fall of 1.7 per cent was recorded – following drops of 1.9 per cent in June and 2.5 per cent in May.

The current average now stands at 34 per cent higher than in 2003 and 114 per cent above 1998’s level, the index said.

People concerned about
debt management
due to negative equity on their homes may be interested in the statistics.

Halifax has said lower mortgage rates are helping the market, with the average mortgage rate paid on outstanding loans falling to 5.76 per cent in June.

A lack of new houses and a strong labour market is also helping the situation, the report said.

“The labour market is the key driver of the housing market and the number of people in employment is at a record high,” it stated.

In related news, speculation on a stamp duty holiday for home buyers was described as “simply wrong” by the Treasury but options are being considered.

By Morwenna Kearns