House prices fell in July as the annual pace of growth hit its slowest rate since the end of 2014, the Halifax House Price Index has shown.
Halifax said prices fell by 0.6% from June and the year-on-year rate of growth in the three months to July dropped to 7.9%.
However house prices in the latest three months (May-July) were still 2.4% higher than in the preceding three months (February-April).
Stephen Noakes, Halifax’s managing director retail customer products, said: “House prices in the three months to July were 2.4% higher than in the previous quarter.
“This measure of the underlying rate of house price growth eased following last month’s sharp rise. Annual house price growth also declined, to 7.9% from 9.6% in June and is at its lowest since December 2014.
“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.
“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.”