Wednesday, July 06, 2011
House prices up in June says Halifax
Posted by David Smith at 08:45 AM
Category: Thoughts and responses

The Halifax said house prices rose by a strong 1.2% in June, but were down by 0.5% in the latest three months and by 3.5% on a year earlier. The June reading means the house price trend is flattening out, according to the Halifax.

According to Martin Ellis, Halifax housing economist:

"House prices in the three months to June were 0.5% lower than in the previous quarter. This was the smallest quarterly fall in prices since the second quarter of 2010. There was a 1.2% rise in prices in June.

"Low interest rates, an increase in the number of people in employment and some tightening in market conditions earlier in the year are likely to have been the main factors behind the recent improvement in price trends. A slowly improving economy and sustained low interest rates should help to support broad stability in the market over the coming months." More here.

Also very perky, general price pressures, according to the British Retail Consortium. The Bank of England's inflation problem is not going away. According to the BRC's shop price index: "Overall shop price inflation increased to 2.9% in June from 2.3% in May. Food inflation accelerated to 5.7% in June from 4.9% in May. Non-food inflation rose to 1.3% in June from 0.8% in May."