Halifax reports house price drop - buy to let mortgages

09 July 2009

The value of property dropped 0.5 per cent in June, according to the Halifax House Price Index.

It was also suggested that the cost of housing in the UK went down 1.9 per cent in the second quarter of the year.

Despite the reduction in values, Halifax had a number of positive comments to make on the overall market.

Evidence of an improvement in sales activity was noted, more mortgage approvals have been made and the quarterly drop in house prices was the smallest since the first three months of 2008.

"Improvements in affordability and low interest rates have stimulated housing demand," the company said in a statement.

"This, together with a low level of properties available for sale, has helped to stabilise activity and reduce the underlying rate of house price decline in recent months."

Conversely, Nationwide Building Society recently reported that the price of property increased by 0.9 per cent between May and June.

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