House prices fall by 0.6% in June

House prices in England and Wales fell by 0.6% in June, according to the latest Academetrics index.

However, on an annual basis the average price for England and Wales increased by 1.2%. This is 1.4% down from the 2.6% recorded in May.

It is the tenth successive month in which the annual growth rate has fallen and it is now at its lowest since April 1996. The annual rate of growth has been declining by around 1% point each month since October 2007.

London prices continue to trend down, but with an annual growth rate in the capital of 6.1% it is still some 2% higher than the next highest region. Eight of the 10 regions in England and Wales now have an annual growth rate of less than 3%. Three regions - the North West, East Midlands and Wales - have a negative annual rate.

Peter Williams, chairman of Acadametrics, said: “Our index shows that house prices have still risen by 1.2% during the past year, but this is the lowest annual growth rate recorded since April 1996 and it is the tenth month in succession that the annual rate has fallen.

“Excluding London, this rate of increase would be even lower at 0.4%. Prices in all regions are now in decline giving a real sense of a momentum building across England and Wales. Looking at the annual growth rate in local authorities on a three-month averaged basis, there are now only five London boroughs and two counties/districts with price inflation in double figures. By contrast we now have one London borough and 32 districts where price falls have been recorded.

“There can be no doubt that the coverage the lender measures attract adds to negativity which in turn undermines consumer confidence and ultimately sales transactions. Clearly there are other factors at work here, not least the continuing shrinkage of the mortgage market.”