House prices "bottoming out" at 2006 levels

House prices in the UK have reached a similar level to that seen at the beginning of 2006, according to new data.

The FT house price index highlights that the average property price stood at £197,802 in June, a fall of 0.3 per cent compared to May and a drop of 13.1 per cent year-on-year.

However, the data does indicate that the rate of annual decline is easing and the number of house transactions is increasing slightly.

"The data does suggest that the sharpest falls are behind us and that the rate of decline has now slowed significantly," said Peter Williams, chairman of Acadametrics, the team behind the FT index.

"Overall the evidence suggests that the market is 'bottoming out'."

Recent data from Halifax suggested that property prices dropped 0.5 per cent in June, reversing the rise of 2.6 per cent it reported the previous month.

It placed the average property price at £157,715.

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2009-07-10 12:41:28 © Moneyextra.com