The housing market experienced a ‘summer slowdown’ with prices increasing at their lowest rate since September 2012.
Figures from the Government’s Land Registry revealed house prices went up by 0.7% in the year to July but this compared to the 1.4% in June.
The Land Registry said this was the lowest annual rate since September 2012, when prices only increased by 0.4%.
Over the past three years there has been a general slowdown in UK house price growth, which has been driven by plunging prices in the south and east of England.
But property market experts said seasonal influences were also at play, with the summer holidays traditionally causing a reduction in activity.
Sam Mitchell, CEO of online estate agent Housesimple, said: “When it comes to property prices a bit of a summer slowdown is no great surprise. The important question is to what extent will the market bounce back from the summer lull, given we usually see increases in property listings of up to 20% in the autumn.”
Concern over Brexit has also made its impact on the market. Mitchell said: “Unsurprisingly, this year there is greater concern around Brexit, which appears to be the main factor behind the larger decline.
“While Brexit uncertainty may put some people off moving, life does not wait for politics to calm down and neither should sellers.
“If you need more space or are in the market for your first or dream home, mortgage rates remain very competitive and less competition in the marketplace could work in your favour.”
Regional prices
According to the Land Registry, the lowest annual growth in July took place in the north east of England where prices fell by 2.9% over the year.
But the south east was not far behind with price dips of 2% over the year.
The strongest growth was experienced in Wales where prices soared by 4.2%. However, this was a slight decrease on the 4.3% rise which occurred in June.
New build homes
Meanwhile, new build properties fared better, increasing by 2% annual compared to 1.2% for existing properties.
Michael Stone, founder and CEO of Stone Real Estate, said this was likely to be attributable to the consistent demand for new properties.
He added: “Not only this, but the new build sector is delivering the three-bed property stock that many family buyers are looking for and with an absence of these seller across the wider market, many are opting to spend a little more and invest in a new home now, rather than an existing property further down the line.”
