Annual house price growth eased to 8.4% in June, the lowest since July 2015, new figures show.
According to the latest Halifax House Price Index, annual house price growth fell from 9.2% in May to 8.4% in June.
Despite the slowdown average house prices hit a new record high of £216,823.
House prices in the last three months were 1.2% higher than the previous quarter, the lowest rise since December 2014.
Martin Ellis, Halifax housing economist, said: “House prices continue to increase, albeit at a slower rate, but this precedes the EU referendum result, therefore it is far too early to determine any impact since.”
Many experts expect house price growth to slow even further as a result of the EU referendum.
Jeremy Duncombe, director of Legal & General Mortgage Club, said:“As predicted, house prices have eased slightly in the weeks leading up to the EU referendum. However, we will only start to see the true shape of the new landscape when next month’s indices are released.
“Despite the many unknowns, the fundamentals of the market are still strong. Borrowers need to know that lenders still have the money to lend, and that mortgages are still available for potential buyers.
“The uncertainty we’re seeing in the mortgage market makes it even more important for borrowers to seek professional advice. An experienced broker will ensure they are receiving the best deal available for their specific needs, allowing them to realise their dream of homeownership, or their need to remortgage, regardless of the current uncertainties.”
Jeremy Leaf, a former RICS residential chairman and north London estate agent, said: “Although the Halifax report shows that house price growth is slowing, it also reveals that the market showed surprising resilience in the period immediately following the increase in stamp duty, leading up to the referendum.
“Despite extreme nervousness at that time as nobody knew what was going to happen, first-time buyers took advantage of opportunities left by investors bringing forward purchases to the first quarter of the year.
“The shortage of stock and fewer transactions is still continuing to underpin prices. Post-referendum at the coalface we have found vendors and buyers willing to proceed in the face of potential adversity with a new sense of realism about the changed environment they find themselves in. Vendors who are more realistic on pricing and buyers who are prepared to be more flexible are able to do deals.”
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