House prices fell 1 per cent in June, according to Halifax’s latest house price index.
The lender’s seasonally-adjusted figures show the average house is now worth £218,390.
June’s house prices were up 2.6 per cent year-on-year.
Property prices fell 0.1 per cent in the three months to June.
Halifax housing economist Martin Ellis says: “Although employment levels continue to rise, household finances face increasing pressure as consumer prices grow faster than wages.
“This, combined the new stamp duty on buy to let and second homes in 2016, appears to have weakened housing demand in recent months.
“A continued low mortgage rate environment, combined with an ongoing acute shortage of properties for sale should help continue to underpin house prices over the coming months.”
SPF Private Clients chief executive Mark Harris says: “‘Speculation about whether interest rates are going to rise sooner rather than later continues but mortgage rates are so far unaffected as lenders compete for business with cheap deals.
“With lenders continuing to offer a good range of high loan-to-value deals at competitive rates, first-time buyer numbers are strong, which is encouraging for the overall health of the housing market.”