House Price Index

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First half price gains set to ebb away

  % Change in month% Change Past YearAve house price
June HPI0.6%1.1%£240,394
May HPI1.3%0.7%£238,874

Key points

  • New sellers’ asking prices increase for the sixth consecutive month, up by 0.6% (£1,520)
  • First half gains of 8.1% (£17,984) expected to ebb away, with asking prices likely to fall by up to 7% in second half of 2011, strengthening buyers’ bargaining power
  • Highest ever June prices and rising stock levels look set to curtail sellers’ “romp away from reality” as mortgage approval figures hit lowest level this year
  • Despite expected price falls we now forecast price gains for 2011 as a whole, surpassing 2010’s virtual standstill, as mortgage arrears and repossession levels fall and mortgage options improve
  • North/south price divide indicates differing economic realities around the country, with London prices now at an all-time high
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