House prices tiptoed up just 0.1% in May, the Halifax reported this morning, but the lender said the overall trend is downwards. The average house price now stands at £160,519, down 4.2% on a year ago.
Halifax chief economist Martin Ellis said: "House prices continue to drift modestly downwards as measured by the underlying trend. Prices in the three months to May were 1.2% lower than in the previous three months; unchanged from April. There was a 0.1% rise in prices in May following April's 1.4% decline.
"Low earnings growth, higher taxes and relatively high inflation are all putting pressure on household finances. Confidence is also weak as a result of uncertainty about the economic and employment outlook. These factors are probably constraining housing demand and applying some downward pressure on prices.
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