House prices dip further in July: Halifax

Its figures show that between May and July, house prices were 0.4% higher than in the preceding three months.

Quarterly price growth was 4.1% higher than in the same three months in 2018, however Halifax noted that the annual figure comes against the backdrop of low growth last year, which has impacted year-on-year comparisons.

Russell Galley, managing director of Halifax, said: “The average UK house price fell slightly for a second month, as the market continues to tread water with marginal increases or decreases in each monthly period. That said, it’s worth remembering that while economic uncertainty continues to weigh on the market, the overall trend actually remains one of comparative stability, with average prices down by less than £600 over the last three months.

“We have seen a reported drop off in the number of properties sold during the early months of summer, which may lead some to speculate a downturn is on the horizon. However, new buyer enquiries are up, and favourable mortgage affordability – driven by low interest rates and strong wage growth – should continue to underpin prices for the time being.

“In the longer-term, we believe there is unlikely to be a step change in market activity until buyers and sellers see some form of resolution to the current economic uncertainty.”

Marc von Grundherr, managing director of estate agency Benham and Reeves, commented: "Are we seeing a further indictment of Brexit paralysis? Or is this a seasonal blip given that the summer months simply tend to see lower demand? I favour the latter especially given that the numbers that we really should focus upon here are the quarterly and annual figures.

"For the UK property market to have seen year on year growth of over 4% despite the best endeavours of our politicians to de-rail public sentiment, has to be viewed as at least resilient - perhaps even astonishing."

Andrew Montlake, managing director of Coreco, added: “The quarterly rate of growth, at 0.4%, is the most accurate portrayal of the market, namely its head is just above water.

“Comparative stability is a fair summary, as the economic fundamentals remain strong, mortgage rates cheap and low supply is propping up house prices.

“Equally, with the odds of no-deal shortening by the day, it’s crunch time for UK bricks and mortar. The impact of no-deal on the UK property market is thick in the air.

“The consensus appears to be that the property prices will suffer if we exit the EU without a deal. But if 'no-deal' is more damp squib than end of the world then the property market could rediscover its mojo.

“What we can be sure of is that, with so many unknowns in play, most households will sit tight during the next two to three months and transactions tail off."