Halifax has released their latest house price report which estimates that property prices slumped by 0.4% in May, a further decrease on the 0.1% decline in April.
 
However, over the last three months, the value of the typical home increased 6.9% on average, on the same period of 2009, the biggest increase since October 2007. This leaves the average house price now standing at £167,570.
Such an increase means prices are just 9.5% below their 2007 peak, although the annual rate of inflation slipped back to 9.8% in May, down from 10.5% a month earlier.

2010 has been a mixed bag of both monthly rises and falls, during which the market has been boosted by low interest rates, but mortgage lenders and property experts remain uncertain of the outlook for the coming months.
Property group Jones Lang LaSalle predict a one per cent fall in property prices by the end of 2010. On the other hand Nationwide’s Chief Economist, Martin Gahbauer, forecasts only a slight increase as “housing market conditions remain characterised by thin transaction volumes and a relative scarcity of properties for sale, despite a slow return of more sellers in recent months.”

Rising unemployment and an increase in new instructions for sale are blamed for a downward pressure on prices. Single buyers are also contributing to the price slump, with 37% of first time buyers now individuals, consequently having a lower income and targeting cheaper housing.