House prices in the three months to July fell by 0.2 per cent, the latest Halifax index has found.
The decline in prices was the fourth successive quarterly fall, the first time this has been the case since November 2012.
However, house prices are on the up on both a monthly and yearly basis, rising by 0.4 per cent and 2.1 per cent respectively in July.
The average UK house now costs £219,266, Halifax’s study shows, 10 per cent above their August 2007 peak.
Halifax Community Bank managing director Russell Galley says: “House prices continue to remain broadly flat, as they have since the start of the year.
“However, a continued low mortgage rate environment, combined with an ongoing shortage of properties for sale, should help continue to support house prices over the coming months.”
SPF Private Clients chief executive Mark Harris says: “Lenders remain keen to lend and mortgage rates are staying extremely low as a result. This state of affairs has been supporting the housing market to an extent and is likely to continue to do so with no immediate interest rate rise on the horizon.
“One of the big issues facing prospective buyers is not so much getting the mortgage they need but finding a property they wish to buy. Until supply improves, this will continue to be the case.”