House prices continued to fall throughout July, new figures from the Halifax House Price Index have shown.

Published today (August 7th), the index indicated that house prices for the period dropped 1.7 per cent, representing an 8.8 per cent fall when compared to annual figures. However, Halifax noted that the rate of decline has continued to slow. Figures in May showed slides of 2.5 per cent, while June’s records demonstrated a 1.9 per cent drop. The group insisted that the housing market had been bolstered by strong labour opportunities, a shortage of new homes and low interest rates. However, the group reported that alongside falling prices, market conditions had also led to a reduction in buying activity.

For those looking for a way to get together a deposit for a property in difficult economic conditions, taking out a cheap loan may be of interest. In opting for this type of loan, people may find they are able to move quickly when a home becomes available, leaving them with an affordable level of repayment.

Indeed, opting for this type of loan may be of particular interest to those who have recently entered into employment after Halifax indicated that the strong UK job market had been responsible for bolstering house prices and sales activity. Figures released by the firm showed that the number of people working in Britain increased by 61,000 in the three months up to May when compared to the previous quarter. Annual results showed that the total number of workers in the country increased 413,000, bringing the total number to a record 29.59 million.

Despite considerable job creation, Halifax pointed out that the high house prices compared to average wages had made it difficult for some buyers to enter the market, while tightened credit conditions had further stifled purchasing activity. These influences, combined with rising food and fuel costs, were said to have acted inhibitively on house price demand.

Citing statistics from the Bank of England, the firm illustrated that the total number of mortgage loans approved during the second quarter of this year had fallen by 60 per cent when compared to the same period in 2007. However, figures from the Royal Institution of Chartered Surveyors have shown that while mortgage loans approvals – along with the number of people interested in property purchase – continued to fall in June, the rate of decline dropped for the second consecutive month.

For those interested in getting on to the property ladder in the coming months, taking out a cheap loan to cover the cost of a deposit may help to make sure that opportunities are not missed. Opting for this type of loan may be of particular interest to those consumers who are keen to make an offer on older property. According to research by Yorkshire Bank, more than half (52 per cent) of those questioned in a recent study said they would choose this type of home over a newer development, even if the house was in significant need of repair. Those who have recently moved in to such a property may be interested in applying for a homeowner loan to cover such costs.

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