Halifax: House prices drop 4.2% year-on-year

The slight monthly increase did little to reverse April's drop of 1.4%. Prices in the three months to May were 1.2% lower than the previous three months, unchanged from April. This means the average house price is now £160,519. Martin Ellis, housing economist at Halifax, said: "House prices continue to drift modestly downwards as measured by the underlying trend. "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 a...