UK house prices down 2% in June

Just a 2% fall this month - equivalent to £800 a week. The 6.1% drop over the past 12 months is the highest recorded by the Halifax, Britain’s biggest mortgage lender since March 1993 and compares with a 3.8% annual fall in May. I remember during the housing boom, the talk at supper parties would be of arriving home from work having seen your property rise in value by more than you had earned in your job. Now that property prices are on the slide, the reverse is often true!

Martin Ellis, Chief Economist of the Halifax is quoted as saying ““A strong labour market, low interest rates and a shortage of new houses underpin housing valuations. Our research shows that the labour market is the key driver of the housing market. Employment is at a record high.”

So now all eyes are turned on the labour market for signs of a downturn in employment. There have been plenty of high profile job losses this week - but there tends to be an asymmetry in the news coverage - new jobs created rarely hit the headlines.