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| UK house prices 'fell 2% in June' | UK house prices 'fell 2% in June' |
| (10 minutes later) | |
| UK house prices fell by 2% in June, according to the UK's biggest mortgage lender, the Halifax. | UK house prices fell by 2% in June, according to the UK's biggest mortgage lender, the Halifax. |
| The drop meant that prices were 6.1% lower than a year ago, with the average home costing £180,344. | The drop meant that prices were 6.1% lower than a year ago, with the average home costing £180,344. |
| The lender said that average house prices were now at the same level as in August 2006. | The lender said that average house prices were now at the same level as in August 2006. |
| But it said that strong employment levels and low interest rates meant that the housing demand retained firm foundations despite price falls. | But it said that strong employment levels and low interest rates meant that the housing demand retained firm foundations despite price falls. |
| A squeeze on spending power, and the lack of availability of mortgages were behind the latest monthly fall, said Halifax chief economist Martin Ellis. | |
| "These factors have curbed housing demand. There has been a slight fall in 'real' earnings over the past year," he added. | |
| More falls? | |
| The Halifax recently forecast that UK house prices are set to fall by 9% this year - having revised its views from February that the market would be "flat" in 2008. | |
| The latest survey from rival the Nationwide said that house prices fell by 0.9% on average last month, with the average home costing 6.3% less than a year ago. | |
| The Halifax's figures came as house builder Barratt confirmed more job cuts in the sector. Barratt said it was cutting 1,200 jobs owing to the housing slump and the squeeze on mortgage lending. | |
| The survey was released just three hours before the Bank of England's Monetary Policy Committee (MPC) announces its latest interest rate decision. | |
| "We expect the UK economy to slow further in 2008, with a further rise in unemployment and low interest rates, accepting that inflationary pressures will restrict the MPC's ability to reduce base rates below current levels," said Mr Ellis. |