House prices in July fell 1 per cent on June, according to the latest Halifax house price index.
However, the index shows prices in July were up 8.4 per cent on the same period last year.
Q2 house prices were also 1.6 per cent higher than in Q1. The average house price is £214,678, according to Halifax.
The number of first-time buyers rose by around 10 per cent in the first half of the year, compared with H1 2015.
Halifax housing economist Martin Ellis says: “House prices in the three months to July were 1.6 per cent higher than in the previous quarter; up from 1.1 per cent in June but comfortably lower than earlier in the year. The annual rate of growth was unchanged at 8.4 per cent; the lowest since July 2015.
“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. The month -on-month changes, however, can be erratic and falls often occur within an upward trend. 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.”
Legal & General Mortgage Club director Jeremy Duncombe says: “As we continue to feel the effects of the UK’s decision to leave the EU, these figures provide clear evidence that house price inflation has plateaued.
“The result of referendum is creating a new economic landscape, as noted by yesterday’s interest rate decision, but it’s important to remember that house prices are still rising at levels well above inflation.
“We cannot let any dampening in rising house prices lead to complacency or make us forget the fundamental problems which continue to plague the property market. There is a critical shortfall of housing stock in Britain, and if the government fails to address this burning issue, even more people will be locked out of homeownership.”