Up 1.6% yr/yr (Il Sole 24 Ore Radiocor) - London, 05 Jul - In June, UK house prices fell 0.2% month on month and rose 1.6% year on year, in line with the previous month, according to the bank Halifax.

A typical UK home now costs 288,455 pounds compared to 288,931 pounds in May, it added.

"UK house prices stayed relatively flat for the third successive month in June, with the slight fall equivalent to less than 500 pounds in cash terms. On an annual basis, house prices posted a seventh consecutive month of year-on-year growth, with the average UK property value now standing at 288,455 pounds," said Amanda Bryden, head of mortgages.

'This continued stability in house prices - rising by just +0.4% so far this year - reflects a market that remains subdued, though overall activity has been recovering. For now it's the shortage of available properties, rather than demand from buyers, that continues to underpin higher prices," Bryden added.

'Mortgage affordability is still the biggest challenge facing both homebuyers and those coming to the end of fixed-term deals. This issue is likely to be eased gradually, through a combination of lower interest rates, rising incomes, and more restrained growth in house prices.

'While in the short-term the housing market is delicately balanced and sensitive to the pace of change to Base Rate, based on our current expectations property prices are likely to rise modestly through the rest of this year and into 2025.'.

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(RADIOCOR) 05-07-24 08:24:23 (0148) 5 NNNN