House prices drop 1.7% in July

The Halifax House Price Index for July showed a drop of 1.7%, mirroring the findings of the Nationwide Index last week. The report cites pressure on household income and constraints on mortgage funds as the reasons consumers are reluctant to enter the housing market, and this in turn is driving prices down. This latest drop brings the annual fall to just under 9%, and puts the average house price at £177,351, equal to the June 2006 figure.