House prices fell month-on-month in July, and quarterly price growth has slowed

 
Helen Cahill
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Housing Market Shows Tentative Signs Of Recovery
Earlier this week Knight Frank said prime property prices had fallen (Source: Getty)

House prices fell between June and July - but there was growth year-on-year, Halifax data released this morning has shown.

Property values in the three months to July were up by 8.4 per cent compared to the same period last year, according to the Halifax house price index. Prices between May and July were 1.6 per cent higher than the prior three months.

The annual growth rate was the lowest recorded since July 2015, Halifax said.

Read more: Everything you need to know about house prices since the Brexit vote

Halifax was keen to point out that "month-on-month changes can be erratic and monthly falls often occur within an upward trend".

Martin Ellis, Halifax housing economist, said: "There are signs that house price growth is slowing with a deceleration in both the annual and quarterly rates of increase in the past few months. Nonetheless, the current rates remain robust.

"July's monthly decline largely offsets June's increase...Overall, it remains too early to determine if there has been any impact on the housing market as a result of June's EU referendum result."

The news follows research released earlier this week that showed prices for prime properties in London have fallen by 1.5 per cent year-on-year in July.

Read more: Winners and losers of the Bank of England's rate cut revealed

The Bank of England's rate cut yesterday is expected to boost the property market, in particular buy to let investment, as landlords opt to put their cash into property instead of leaving it in the bank.

The weaker sterling will also attract international investors looking to buy UK property at a discount, boosting prospects for developers and people looking to sell their homes - but savers have been hit by the the record low rates.

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