First drop in house prices for five months

House prices fell in July for the first time in five months, says Halifax.

According to the lender’s latest house price index, prices fell by 0.6 per cent to £198,883 last month. However, on an annual basis, prices were up 7.9 per cent.

Halifax managing director of retail customer products Stephen Noakes says: “The underlying pace of house price growth remains robust notwithstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand.

“Supply is highly restricted with the stock of homes available for sale falling further to new record lows. This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near term.”