House prices fall by 1% in July, according to Halifax

UK house price growth shows signs of slowing, dropping 1% in june compared with previous month, according to Halifax.

House prices in the UK fell by 1% in July compared with the previous month, but were still 8.4% higher than a year ago, Halifax said.

Although the lender said that there were signs of house price growth slowing, they said that it was too early to determine whether the recent Brexit vote is impacting on the housing market.

Martin Ellis, Halifax housing economist, said: “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”.

The Bank of England cut interest rates on Thursday 4 August, from 0.5% to a new historic low of 0.25%, which will take an estimated £22 off the monthly mortgage bill of those with tracker deals.

The Bank of England also suggested that house prices may fall.

A recent report from the Resolution Foundation revealed a fall in home ownership in major cities in the UK, due to individuals unable to save the deposit needed.

Major English cities, in particular, Manchester, have seen the sharpest falls in home ownership since the early 2000s, while there were also double-digit falls in West Yorkshire, the metropolitan area of the West Midlands and outer London.

Home ownership in the UK has fallen to its lowest level since 1986 as soaring property prices shut people out of the market.

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