Despite a slowdown in the market, average house prices across England and Wales rose by £8,433 in July.
According to the latest Your Move house price index, monthly growth in July dipped 0.2%, taking the annual rate of house price inflation down to 2.9% – the lowest since July 2013.
This is the fourth successive month of price falls and takes the average UK house price to £298,906.
Your Move said that the number of transactions dropped an estimated 9% July, mainly due to the summer slowdown.
Oliver Blake, managing director of Your Move and Reeds Rains estate agents, said: “Annual prices are still rising positively and regions continue to perform strongly – despite the slowdown in transaction numbers over the summer months.
“Whilst, as a business, we often see this at this time of year, the cause of the dip may also be down to the buy-to-let slowdown as a result of tax changes.”
London and East of England continue to show strong annual growth, with prices up 2.4% and 5.1%, respectively.
Your Move said there was evidence of a re-emerging north-south divide in the housing market, with the North East (1.1%), Yorks & Humber (1.5%), and the North West and West Midlands (both up 3.3%) recording weaker growth than the southern regions.
Wales recorded the biggest drop in annual growth, down 1.5% to just 0.2% for the year.
According to the latest Halifax House Price Index, annual house price growth eased to 2.1% in July, down from June’s figure of 2.6%.
The lender said that the growing squeeze on household finances and higher stamp duty introduced on buy-to-let and second homes was weighing on demand.
Founder and CEO of eMoov.co.uk, Russell Quirk, said: “The UK property market has suffered a number of economic and political blows over the last 12 months, particularly the combination of punches dealt to buy-to-let landlords. But whilst growth has slowed of late and the market seems to be against the ropes, there will be no lasting knockout coming in the medium to long term.
“The naysayers will continue to talk the market down but its overall strength should not be underestimated and as we start to see monthly growth stabilise again the market should find its feet during the remainder of the year.”
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