UK home prices rose for a second month in June, 2012 according to Halifax, which expects little change in values for the rest of the year.
Values increased 1% from the previous month, when they rose 0.4%, the mortgage unit of Lloyds Banking Group Plc (LLOY) said in a statement in London.
From a year earlier, prices were down 0.2% to an average 1.62,417 pounds ($ 2,53,200).
The UK property market has struggled to recover amid tight lending conditions that’s made it difficult to get a mortgage.
The Bank of England, which is working on a new plan with the government to boost lending, will probably decide today to expand stimulus to stoke an economic recovery and keep its benchmark interest rate at a record low.
Mr. Martin Ellis, Economist, Halifax said, “Continuing low levels of mortgage payments relative to income & recent increases in employment may have helped support house prices so far this year. We expect small change in prices and sales over the remainder of the year provided that the UK’s economic outlook does not deteriorate significantly”
Over the one year, there have been 6 monthly price increases and six declines, based on Halifax data. In the second quarter, values fell 0.3% compared with the quarter through March and were down 0.5% from a year earlier.
Other recent data point to a slowdown in the home market. Hometrack Ltd. said this week that property prices stopped rising in June for the first time in 4 months as economic uncertainty and a seasonal slowdown curtailed activity in a market that now faces “downward pressure.” Nationwide Building Society said prices fell 0.6% last month. Mortgage approvals fell to 51,098 in May from 51,627 the previous month.
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