House prices continued to fall in June, with an overall drop of 0.9 per cent recorded by financial services provider Nationwide.

Monthly findings from the building society indicate that the rate of falls in prices has slowed since May, the value of the average home dropped by more than 1,000 pounds during the course of the month. Figures from the previous month noted a record drop of 2.5 per cent, bringing the average UK house price to stand at 173,583 pounds. In June’s results, that figure had decreased to 172,415 pounds. Compared with last year’s monthly findings, Nationwide indicated that house prices are currently 6.3 per cent lower than they were in June 2007 and 7.3 per cent lower than the peak recorded in October.

In real terms, this means that homes throughout the UK are now worth 13,500 pounds less than they would have been had they been sold at the top of the market. However, Nationwide points out that rapid expansion in the housing market over the last two years has meant that prices are still relatively high when compared to prices seen earlier in the decade. Currently, UK properties are worth nine per cent more than they were three years ago and four per cent higher than they were two years ago.

For those who are looking to take advantage of the falls in the market and get onto the property ladder, taking out a secured loan may help to provide the funds necessary to put down a deposit on a dream home. Indeed with the recent falls easing, now might be an opportune moment to take out such a loan.

Commenting on the statistics, Fionnuala Earley, Nationwide’s chief economist, said that first-time buyers had accounted for much of the house purchase activity.

“First-time buyers’ activity as a proportion of overall house purchase completions has held up fairly well. First-time buyers accounted for about one third of house purchase transactions in the first quarter of the year, exactly in line with the average over the last three years. However, movers’ activity fell back further. Movers accounted for about half of all house purchases in the first quarter, below the 55 per cent average of the last three years. In contrast, estimates of buy-to let house purchase activity held up very well. These purchases accounted for about 19 per cent of house purchase completions in the first quarter,” she said.

Ms Earley added that with the number of house purchase transactions continuing to fall, the group expected no immediate turnaround in the buoyancy of the market. However, she noted that if prices continue to fall, more first-time buyers will be able to benefit from the increased affordability.

For those wishing to get ahead in the property market in the coming months, taking out a secured loan may be of assistance in providing much need capital for a deposit. In early June, the Council of Mortgage Lenders offered its support for those looking to purchase property, urging chancellor Alistair Darling to provide greater support for consumers in tough economic circumstances.

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