July house price figures show slight recovery

19 September 2008

New Government figures show a 0.5% drop in average house prices in the three months to July, despite a slight recovery in the final month.

The Department of Communities and Local Government said the average property cost £217,171 in July, a 1% increase on June`s average price of £215,029.

The rise had a slowing effect on the decline in house prices, although the three months to July still showed a slight fall in prices.

The news will be of some comfort to homeowners worried about their mortgage being devalued by the housing market slump, although a spokesperson for Think Money Mortgages has said that the figures should not be taken as a prediction for the future.

“The increase in July’s house prices is encouraging, but it could yet prove to be an anomaly.

“The underlying conditions causing the problems in the housing market, such as lack of mortgage availability, are still present. For this reason it’s quite possible that the next statistics will show a further fall in prices.”

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