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House prices set to flatline say Halifax

House prices in the UK will flatline by the end of the year due to difficult economic conditions, according to the Halifax.

In a recent survey, the lender found that prices were broadly similar to a year ago, falling 0.1% in May - although this figure was an 0.5% increase in April 2012. The average house price is now £160,941.

Commenting on the figures, Halifax housing economist Martin Ellis said: “While there has been a modest improvement in the trend for house prices recently, the current average UK price is very similar to the levels both a year ago and at the beginning of this year.

Economic uncertainty and an intensification of the Eurozone crisis have caused lenders to be more cautious when offering mortgages, and the Halifax believes that this will constrain activity within the housing market.

While figures remain relatively stable, Ashley Alexander of MeetMyAgent.co.uk believes that this is an indication of inactivity within the market.

He said: “There are simply too many factors preventing a purchase. A lack of stock generally, intransigent sellers, tougher lending criteria and consumer caution are keeping transaction levels low.

This was posted in Bdaily's Members' News section by Ruth Mitchell .