Annual house price inflation slows despite 1.3% monthly rise

Annual house price growth slowed to 8.4% in June, the lowest level since July 2015, Halifax has claimed.

Average prices in the three months to June fell to £216,823, according to the latest Halifax House Price Index.

The figures were up 1.3% on May, but Halifax economist Martin Ellis says the reason for the slowdown is unclear as much of the data predates the EU referendum.

He said: “There is evidence that the underlying pace of growth is easing. House prices in the three months to June were 1.2% higher than in the previous quarter, down from 1.5% in May.

“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.”

Jonathan Hopper, managing director of Garrington Property Finders, said all bets are off in the property market since Brexit.

He said: “The market has fundamentally shifted. While it is too early to know how much prices have fallen, sellers are already behaving as if a fall is coming.

“Many of those who have to sell are starting to offer discounts, often big ones.

“The Halifax data is likely to represent the high water mark for prices this year, but now serves as little more than a historical record of the rising market’s last hurrah.”

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