Survey shows drop in house prices and 18% fall in sales compared to 2009

The UK housing market is slowing, according to a report from the Halifax bank.

The latest monthly survey conducted by the bank shows that house prices fell by 0.4% in May. This is in contrast to a similar survey by the Nationwide building society, which indicated on Thursday that prices were edging up.

The Halifax report says prices have now fallen in three of the past four months and that house sales in the first quarter of the year were 18% down on the last quarter of 2009.

However, the more homes may come onto the market in the coming months, which may lead to more eventually being sold.

“Estate agents have reported an increase in instructions from new vendors in 10 of the past 11 months,” said Martin Ellis, housing economist at the Halifax, speaking to the BBC.

“The recent suspension of home information packs and uncertainty about changes to capital gains tax may also be persuading more homeowners to put their properties on the market,” he added.