House Price Update 27/7/11

UK House Prices Situation: Prices stagnate in July in most areas

UK House Prices Forecast: Little change as pricing stability and lending restrictions limit activity

House Sales Up But Demand Weakening Again

The number of agreed sales rose by 10.7% in June and by a further 9.6% in July, according to the latest figures from property market website Hometrack. Despite this healthy-looking summer boost to house sales, the overall picture remains more subdued.

Hometrack's data is based on survey data collected from estate agents all over the UK and covers every UK postcode area. It found that despite the rise in sales seen in July, the average time on the market barely improved, falling from 9.7 weeks in June to 9.4 weeks in July.

Similarly, there has been no improvement in the percentage of the asking price being achieved over the summer season, with buyers paying an average of 92.7% of the asking price in May, 92.8% in June and 92.7% in July.

According to Hometrack, the average UK house price fell by 0.1% in July. This apparently bland figure hides a bigger divide, however. House prices fell in 27% of postcodes and only rose in 8% of postcodes, highlighting how the UK's housing market continues to be divided into small areas of prosperity and larger areas of increasing weakness.

Prices Up 2.6% Since January – Zoopla

House prices have risen by an average of 2.6% since January 2011, according to property website Zoopla.co.uk. The website reckons that the gains have "clawed back some of the losses suffered over the second half of 2010", during which period property prices fell by 4.9%.

Read about UK House Price indexes / key statistics that track the ups and downs of house prices

Read our take on the Credit Crisis the effect on UK House Prices and Mortgages. A Special Report

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