Latvia, romania and sweden buck european house price drop

European house prices have slipped in the second quarter of 2013, according to Eurostat, with the exception of a handful of countries in the east.

The statistical office of the European Union found that house prices in European countries fell 1.4 per cent in the second quarter of the year compared to the previous three-month period - a drop that was topped by Eurozone countries, where values fell by 2.2 per cent.

House prices fell by 1 per cent compared to the fourth quarter of 2012 within the Eurozone, almost double the wider continent’s decline of 0.6 per cent.

The worst fall was recorded in Spain, where prices plummeted 12.8 per cent, followed by Hungary, where prices fell 9.3 per cent. Portugal and The Netherlands saw prices fall 7.3 per cent and 7.2 per cent respectively.

But while other countries, including Cyprus and Greece, saw prices slide, others witnessed a rise in prices. Estonia enjoyed a price rise of 7.7 per cent year-on-year, while Latvia followed close behind with a rise of 7.2 per cent. Luxembourg and Sweden saws prices jump 4.3 per cent and 4.1 per cent respectively.

The highest quarterly increase occurred in Romania, with prices up 4.3 per cent, followed by Estonia’s 3.1 per cent and 2.3 per cent in both Latvia and Slovakia.

Minor house price falls were recorded in other European countries too, including a 0.7 per cent slip in France, a 1.1 per cent dip in Italy and a 5.7 per cent rise year-on-year.

The UK saw prices dip in the second quarter of 2013, but remain 2.2 per cent higher than last year.