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House prices flat on rising demand

Demand is outstripping supply and propping up house prices, according to housing intelligence group Hometrack.

The group said domestic property prices were flat for a second consecutive month during June as interest from potential buyers increased.

The average cost of a property in England and Wales remained unchanged during the month at £155,600, according to Hometrack’s data.

Its annual measure also revealed a decline in house price falls - with values down 8.7 per cent year-on-year in June, down from a 9.6 per cent drop in May.

Hometrack said rising sales volumes, a dwindling supply of homes on the market and a continued increase in demand were all helping to underpin prices.

Breaking the data down into postcode areas, only 3 per cent saw price falls during month, down from 32 per cent in April.

Hometrack’s director of research Richard Donnell said: “A lack of supply and rising demand have combined to prop up house prices in the last two months.

“Over the last six months, the volume of buyers has grown by 36%, this compares to a 6.4% increase in the number of homes for sale.”