UK house prices experienced a slightly more than expected decrease during the month of June.  The average house price across the country fell by more than £1,000, according to Halifax.  The natural correction in house prices is following quite a heated period for the housing market, and even now the house prices are still ablaze when considering the data from just one year ago.

House prices in the UK are up almost 10% when considering the three months to March during the year 2013.  The average house price now sits at more than £183,000.  This figure is quite staggering and is around five times the national average of earnings for a full time male employee.  Housing costs have now made it nearly impossible for those trying to purchase a house as a singleton.

Stephen Noakes with Halifax commented on the demand seen within the housing market, saying: "Housing demand continues to be supported by an economic recovery that is gathering pace, with employment levels growing and rising consumer confidence, although real earnings growth remains sluggish."

Howard Archer, chief UK at Global Insight also commented on the June drop in prices, saying: "While [the 0.6% drop] may be a sign that house prices are starting to lose momentum in reaction to the recent moderation in activity, June's drop must be treated with a high degree of caution as it followed a jump of 4.0% month-on-month in May. In fact, the Halifax house price index has been particularly volatile in recent months."

He continued: "At the moment, house prices still look more likely than not to see clear increases over the coming months, although it is looking increasingly probable that there will be some easing back in house price gains from the recent strong increases."