UK house prices unchanged

House prices in Britain remained static during the first half of this year as affordability constraints prevented people getting on to the property ladder, figures showed today.

Britain’s biggest mortgage lender Halifax said prices edged ahead by just 0.1% during June, but the three rises seen so far this year have been cancelled out by monthly falls.

At the same time the bank said annual house price inflation for the year to the end of June fell to just 3.7%, its lowest level since March 2001.

The figures are in line with those reported by Nationwide Building Society last week that showed annual growth of just 4.1%.

Evidence that the housing market has slowed down increases the scope for the Bank of England’s Monetary Policy Committee to reduce interest rates.

But it is thought the committee, which is due to announce its decision on the cost of borrowing at noon today, will keep rates on hold despite signs that the economy is coming under increasing strain.