June 11, 2011 | Author

Author Alec Hanson

May Halifax HPI

Halifax house price index for May has reported a 0.1% increase since April leaving the average house price at £160,519.

However this represents a 4.2% fall since last year and shows they have ‘wilted in spring’ according to the BBC!

Drifting

Commenting, Martin Ellis, housing economist, said:

“House prices continue to drift modestly downwards as measured by the underlying trend. Prices in the three months to May were 1.2% lower than in the previous three months; unchanged from April.”

However teh Halifax, now part of the Lloyds TSB Group, expects to see a moderate improvment in the economy over the rest of 2011. This along with low interest rates it expects to support the housing market.

Divergence

However there is a slight divergence in these figures compared to Nationwide who has seen less of an annual fall, only -1.2%.

Nationwide has has seen an increase in house prices since the beginning of the year from £161,211 to £167,208. Where as Halifax has seen a fall from £164,145.

Supply and Demand

The ratio of house sales to stock of unsold properties has move up slightly for the 3rd successive month according the RICS.

Yet the overall house sales remain subdued beng 5% lower than the same period last year.

For more information visit: http://www.lloydsbankinggroup.com/media1/economic_insight/halifax_house_price_index_page.asp