Strict lockdown measures have resulted in many buyers pulling back from the market concerned that their financial position might deteriorate in the future.

According to the latest figures released this morning, average UK house prices saw a ‘modest’ fall of 0.2% during May, with early signs that market activity is beginning to pick up.

Between March and May, house prices were 0.5% lower than in the preceding three months. However, May’s house prices remain 2.6% higher than in the same month a year earlier.

Anna Clare Harper, co-founder of property fund Anglo Residential, says: “The recent and dramatic fall in transactions, new instructions and buyer demand, as well as practical restrictions on valuations and finance, means it is hardly a surprise that Halifax’s data illustrates a slight fall in house prices on a monthly and quarterly basis. However, many investors and homebuyers remain keen to purchase property.

“From what we are seeing in the market, we expect short-term volatility exaggerated by low transactional volumes. More important for most long-term investors and buyers is the underlying 2.6 per cent annual growth illustrated by Halifax, reflecting positive sentiment beneath the obvious.”

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