House prices fell slightly in July, in the first drop for six months according to the Halifax.
It says prices dipped 0.6 per cent last month, leaving the average price of a home on sale at £198,883.
This means that over the last three months as a whole average prices rose 2.4 per cent compared to the previous three months, while annual house price inflation is running at 7.9 per cent.
“The underlying pace of house price growth remains robust notwithstanding the easing in July. Continuing economic recovery, earnings growth in excess of consumer price inflation and very low mortgage rates all underpin housing demand” says Halifax spokesman Stephen Noakes.
“Supply is highly restricted with the stock of homes available for sale falling further to new record lows. This combination of well-supported demand and tight supply is likely to ensure that house price growth remains relatively strong in the near-term.”
Earlier this week the Nationwide index also suggested the market was beginning to show underlying stability.