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Mortgage enquiries double as prices dip 0.1% in June

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Prices have fallen for four months in a row but demand remains high, said the UK's largest lender
Mortgage enquiries double as prices dip 0.1% in June

New mortgage enquiries surged in June, said Halifax, as house prices fell for the fourth straight month.

The lender said that house prices dipped 0.1% last month to an average of £237,616.

However, this is still an annual increase in property prices of 2.5%.

Russell Galley, managing director of Halifax, said: “Activity levels bounced back strongly in June, which is typically the busiest month for mortgage activity in the UK. New mortgage enquiries were up by 100% compared to May, and with prospective buyers also revisiting purchases previously put on hold, transaction volumes rose sharply compared to previous months.

“However, whilst encouraging, it remains too early to say if this level of activity will be sustained.”

David Westgate, group chief executive at Andrews Property Group, added: “Nobody can deny the property market is facing a huge amount of uncertainty given rising unemployment, but for now it is proving far more resilient than many expected.

“In some areas, we are actually seeing prices nudge up slightly as demand outstrips supply. Since mid-May, the pent-up demand that accumulated during lockdown has been unleashed on the market and has even put a slight spring in its step.

“We have just had the best four weeks of business trading in 2020 and the figures coming in are actually slightly higher than this time last year. The great unknown is whether the bounce we have seen in recent weeks is simply a dead cat bounce.”

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