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| House prices 'fell 0.9% in June' | House prices 'fell 0.9% in June' |
| (20 minutes later) | |
| UK house prices fell by 0.9% on average last month, according to the latest survey from the Nationwide. | UK house prices fell by 0.9% on average last month, according to the latest survey from the Nationwide. |
| The decline was less severe than the record 2.5% fall seen in May, but prices were now 6.3% lower than a year ago, the Nationwide said. | The decline was less severe than the record 2.5% fall seen in May, but prices were now 6.3% lower than a year ago, the Nationwide said. |
| The average home now costs £172,415 and is £13,629 cheaper than at the top of the market in October last year. | The average home now costs £172,415 and is £13,629 cheaper than at the top of the market in October last year. |
| The Nationwide survey found that the housing market in Scotland had been more resilient than elsewhere. | The Nationwide survey found that the housing market in Scotland had been more resilient than elsewhere. |
| Although prices in the three months to June had fallen in Scotland by 1.8% compared with the previous quarter, it was the only area to see an annual growth, up 0.6%. | Although prices in the three months to June had fallen in Scotland by 1.8% compared with the previous quarter, it was the only area to see an annual growth, up 0.6%. |
| FROM THE TODAY PROGRAMME More from Today programme | FROM THE TODAY PROGRAMME More from Today programme |
| Nationwide suggested that the sharp rise in oil prices had benefited regions such as Aberdeenshire. | Nationwide suggested that the sharp rise in oil prices had benefited regions such as Aberdeenshire. |
| It also pointed to the fact that prices did not shoot up as quickly during the housing boom. | It also pointed to the fact that prices did not shoot up as quickly during the housing boom. |
| Pace of change | Pace of change |
| The credit crunch and the resulting difficulty for many to get a good mortgage deal has led to many potential buyers staying put across the rest of the UK. | The credit crunch and the resulting difficulty for many to get a good mortgage deal has led to many potential buyers staying put across the rest of the UK. |
| The sometimes volatile monthly figures showed that the pace of price falls had eased, down 0.9% in June whereas it had dropped 2.5% in May. It was the eighth consecutive monthly fall in prices. | The sometimes volatile monthly figures showed that the pace of price falls had eased, down 0.9% in June whereas it had dropped 2.5% in May. It was the eighth consecutive monthly fall in prices. |
| The year-on-year change across the UK was down 6.3% in June compared with 4.4% in May. | The year-on-year change across the UK was down 6.3% in June compared with 4.4% in May. |
| The Bank of England this week said that mortgage approvals in the UK has slumped to 42,000 in May, a 28% fall compared with the previous month and 64% down on a year ago. | The Bank of England this week said that mortgage approvals in the UK has slumped to 42,000 in May, a 28% fall compared with the previous month and 64% down on a year ago. |
| Nationwide said the lack of activity in the housing market was key to prices, but its analysis suggested it was movers, rather than first-time buyers who were staying put. | Nationwide said the lack of activity in the housing market was key to prices, but its analysis suggested it was movers, rather than first-time buyers who were staying put. |
| It said first-time buyers accounted for a third of transactions in the first three months of 2008, in line with the average over the previous three years. | It said first-time buyers accounted for a third of transactions in the first three months of 2008, in line with the average over the previous three years. |
| Movers accounted for fewer than half of transactions in the same period, below the 55% average of the past three years. | Movers accounted for fewer than half of transactions in the same period, below the 55% average of the past three years. |
| See regional house price breakdown | |
| The low transaction levels meant the trend with prices would continue, according to Nationwide's chief economist Fionnuala Earley. | The low transaction levels meant the trend with prices would continue, according to Nationwide's chief economist Fionnuala Earley. |
| "It seems unlikely that there will be any rapid turnaround in housing market fortunes in the coming months," she said. | "It seems unlikely that there will be any rapid turnaround in housing market fortunes in the coming months," she said. |
| "However, as prices continue to fall affordability measures become more favourable for those in a well-financed position to buy." | "However, as prices continue to fall affordability measures become more favourable for those in a well-financed position to buy." |
| Regional picture | Regional picture |
| The average home is £13,629 cheaper than at the price peak in October and £11,500 less than at the same time in 2007, but prices are still 4% higher than two years ago and 9% higher than three years ago. | The average home is £13,629 cheaper than at the price peak in October and £11,500 less than at the same time in 2007, but prices are still 4% higher than two years ago and 9% higher than three years ago. |
| BIGGEST ANNUAL RISE IN PRICES Cambridge: 4% annual change, average price £316,548Canterbury: +4%, £224,787Oxford: +4%, £324,566Carlisle: +3%, £153,512Aberdeen: +3%, £225,124 | BIGGEST ANNUAL RISE IN PRICES Cambridge: 4% annual change, average price £316,548Canterbury: +4%, £224,787Oxford: +4%, £324,566Carlisle: +3%, £153,512Aberdeen: +3%, £225,124 |
| Alongside the monthly survey, the Nationwide has released its quarterly figures on a more local level. | Alongside the monthly survey, the Nationwide has released its quarterly figures on a more local level. |
| They showed the biggest annual price rises for the second quarter were to be found in the university cities of Cambridge, Canterbury and Oxford, followed by Carlisle and Aberdeen. | They showed the biggest annual price rises for the second quarter were to be found in the university cities of Cambridge, Canterbury and Oxford, followed by Carlisle and Aberdeen. |
| Twelve out of 13 areas of the UK witnessed year-on-year drops in house prices during the three months from April. | Twelve out of 13 areas of the UK witnessed year-on-year drops in house prices during the three months from April. |
| London - although still the most expensive - has fallen more in line with the rest of the UK owing to tighter controls on lending by banks, a squeeze on household finances and less secure job prospects in the City, according to Nationwide. | London - although still the most expensive - has fallen more in line with the rest of the UK owing to tighter controls on lending by banks, a squeeze on household finances and less secure job prospects in the City, according to Nationwide. |
| Scottish house prices have been "more resilient" but Northern Ireland has shown the biggest correction after sharp rises in 2006-7. | Scottish house prices have been "more resilient" but Northern Ireland has shown the biggest correction after sharp rises in 2006-7. |
| BIGGEST ANNUAL FALL IN PRICES Sheffield: 17% annual fall, average price £168,321Belfast: -11%, £268,174Birmingham: -9%, £166,581Manchester: -9%, £192,151Coventry: -9%, £158,888 | BIGGEST ANNUAL FALL IN PRICES Sheffield: 17% annual fall, average price £168,321Belfast: -11%, £268,174Birmingham: -9%, £166,581Manchester: -9%, £192,151Coventry: -9%, £158,888 |
| At a local level, the biggest falls in prices, year-on-year for the second quarter were in Sheffield, Belfast, Birmingham, Manchester and Coventry. | At a local level, the biggest falls in prices, year-on-year for the second quarter were in Sheffield, Belfast, Birmingham, Manchester and Coventry. |
| Ms Earley predicted that the next move in interest rates would be down, at some point before the end of the year owing to increased pressure on consumer spending and a slowing economy. | Ms Earley predicted that the next move in interest rates would be down, at some point before the end of the year owing to increased pressure on consumer spending and a slowing economy. |
| But Alan Clarke, UK economist at BNP Paribas, said: "There is virtually no light at the end of the tunnel for the housing market." | But Alan Clarke, UK economist at BNP Paribas, said: "There is virtually no light at the end of the tunnel for the housing market." |
| Jeremy Leaf, of the Royal Institution of Chartered Surveyors, said that all the same reasons existed for people wanting to move home, but lenders were still uneasy about giving mortgages. | Jeremy Leaf, of the Royal Institution of Chartered Surveyors, said that all the same reasons existed for people wanting to move home, but lenders were still uneasy about giving mortgages. |
| He was more optimistic than many as he said that the housing market was approaching the end of the downturn. | He was more optimistic than many as he said that the housing market was approaching the end of the downturn. |
| "There is a little bit of a glimmer that it is not getting as bad, as quickly, as three months ago," he told the Today programme. | |
House prices, regional breakdown | |
April - June 2008Region Average Price Quarterly % change Annual % change North £129,700 -3.00% -3.60% Yorks & Humber £146,074 -4.50% -5.90% North West £150,162 -3.20% -5.30% East Midlands £147,413 -4.20% -5.80% West Midlands £156,219 -3.10% -5.10% East Anglia £172,164 -5.00% -5.10% Outer South East £204,292 -4.30% -4.00% Outer Metropolitan £248,263 -2.80% -2.00% London £285,568 -3.80% -2.30% South West £194,714 -1.30% -3.10% Wales £143,147 -5.70% -7.60% Scotland £149,541 -1.80% 0.60% Northern Ireland £183,476 -9.00% -18.60% UK £174,514 -3.40% -4.00% Source: Nationwide | |
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| Has your home been lowered in value? Has the fall in house prices made it easier for you to buy? Send us your comments using the form below: | Has your home been lowered in value? Has the fall in house prices made it easier for you to buy? Send us your comments using the form below: |