Concern expressed over property market

Analysts have expressed concern over the state of the UK property market as new data indicates it may be slowing down again.

Bank of England data for June showed that the number of house purchases fell from May’s tally, dropping from 49,461 to 47,643 and also down on the six-month average of 50,036.

Net lending secured on dwellings rose by 0.7 billion, compared with the previous month’s 0.8 billion increase and the six-monthly average rise of 1 billion.

Commenting on these findings, Council of Mortage Lenders chief economist Paul Samter noted the market had seen its first downturn since April 2009, adding: “It is likely to remain so in future months as comparison is made with a rather stronger market towards the end of last year.”

House prices have also been falling and the latest Nationwide figures showed a 0.5 per cent drop this month.

This figure that prompted Royal Institution of Chartered Surveyors chief economist Simon Rubinsohn to remark that it brings the lender’s recorded price statistics “more into line with the broad trend ” seen across the property market in recent months.