UK house prices dropped again last month, according to Halifax, hit by rising interest rates.
Its monthly house price index showed that the average house price dropped by 2.4% on an annual basis in July, a pick-up compared with June, when prices fell by 2.6%.
On a monthly basis, prices eased 0.3%, the fourth consecutive monthly fall.
But Kim Kinnaird, director of Halifax Mortgages, said the small falls add “to the sense of a housing market which continues to display a degree of resilience in the face of tough economic headwinds”.
She added that, in particular, “we’re seeing activity amongst first-time buyers hold up relatively well”.
“In reality, prices are little changed over the last six months, with the typical property now costing £285,044, compared to £285,660 in February. The pace of annual decline also slowed to -2.4% in July, versus -2.6% in June.”
Last week, in its monthly health check of the property sector, Nationwide said that average house prices fell by 3.8% year-on-year in July, the biggest drop since the aftermath of the financial crisis.
The EY ITEM Club noted “house prices are likely to continue heading down, albeit more in the form of a slow puncture than a serious correction”.
“Although mortgage rates have started falling from their recent highs, they are likely to remain above where they were just a couple of months ago,” the economic forecaster said.