House prices fell £70 per day in June - Halifax
The Halifax House Price Index seems to provide new evidence that the property market is cooling. It shows prices falling by 1% last month - some £2,125, or around £70 a day.
They also report a 2.6% annual rise in June - the smallest since May 2013, Martin Ellis, Halifax housing economist, said: “Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages.
“This, combined the new stamp duty on buy-to-let and second homes in 2016, appears to have weakened housing demand in recent months.”
“We know that landlords have been hit hard recently,” says Alex Huntley, Head of Operations at Simple Landlords Insurance.
"Tax changes, universal credit, stamp duty, tenancy deposit caps - are all starting to add up. Like anything else, though, it’s all about perspective. Figures from Nationwide, for instance, report house prices actually going up in June - based on their own mortgage information.
“From our perspective, we’re seeing lots of landlords staying still, and riding out the current legislative, political and financial storm. 88% of our landlords still plan to be landlords in 2 years time. 32%, though, actually wanted to expand their portfolios - and for landlords looking to invest, falling house prices could actually mean new opportunities.”
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, is also cautious about seeing Halifax’s results as the beginning of a larger or longer decline. He said: “The underlying trend in prices probably is flat, with the impact of weak underlying demand being offset by a sharp contraction in the number of homes for sale.
“The trend in prices likely won't improve in the second half of this year, though. The recent pickup in wholesale financing costs, due to speculation that the MPC will raise interest rates soon, will prevent mortgage rates from falling further.”