UK house prices fell 1.2% on the month in June and the level of activity in the market appears to have moderated, according to the latest house price survey from Halifax Building Society.
The UK's largest mortgage lender said the three-month annual increase in house prices was 9.4%, but was likely to ease in the coming months, if only because the comparative figures last year were strong.
'The level of activity appears to have moderated in recent months,' Halifax said in a statement, saying the number of mortgage approvals during March-May was down 4% on the preceding three months, adjusting for seasonal factors.
Halifax said the average price of a UK home was a seasonally-adjusted £176,509 sterling in June.
'Sound fundamentals, underpinned by a strengthening economy, high levels of employment and low interest rates, will continue to support housing demand over the second half of 2006, ensuring that the market remains in good health,' Halifax Chief Economist Martin Ellis said in a statement.
'The annual rate of house price inflation, however, is expected to ease, partly because the corresponding figures last year were strong,' he added.
